July 31 , 2018
By looking at the daily technial chart we can see that pair is trading in downtrend channel with full of bearish momentum and heading towards south side. In the starting of July month we have seen a counter attack from bull’s side but it was limited to 1.3260 as we can see it as a profit booking. After that bears turned back into the game and taking it downside as it is trading at 4 month’s fresh low.
Yesterday’s bearish marabuzo candlestick is generating purely bearish signal and further downfall is on the cards. The sterling has been trading downside against the Swiss franc. As we can see a steep downfall from 1.3855 level in the month of April 2018 and pair is still falling down continuously. By looking at the daily technical chart pair is heading towards south side as it seems like bears are knocking the door again and three black crow candlestick pattern has been formed on the daily technical chart which indicates that further selloff is still awaited.
The pair is trading below all the major and minor EMA lines which support the bearish sentiments. The situation is favourable for bears as we can see that a downtrend line is also lying on the chart. Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.3250 level remains intact. The way bears are reacting it seems like they are approaching the 1.2860 level atleast, however some profit booking can’t be ignored but that should be taken as selling opportunity for those who has missed earlier.
A bearish crossover on MACD indicator is supporting the bears and RSI is also favoring the bears from below 50 territory. The 1.2860 is immediate support level followed by 1.2800 level whereas 1.3250 level is immediate resistance level followed by 1.3350.
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