In my technical analysis for GPBUSD currency pair, it has been going bullish since 07/072013, but now the
bullish trend seem to be weakening and the bears seem to be getting
stronger, taking over
the market and trying to bush the price down. Lets take a look at the GBPUSD live chart analysis below
the market and trying to bush the price down. Lets take a look at the GBPUSD live chart analysis below
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| GBP/USD Monthly Live Chart |
According to the GBPUSD live chart technically analysed above, the market
tested the closing price of candle A, in B and C but ended up closing below the
closing price of candle stick A. That means that each time the bulls tried to push
the price further up above the closing price of candle stick A, they ended up losing
the battle to push the price further up to the bears and the price came tumbling
down as seen in B and C. That is the first sign of
weakness as seen in the GBPUSD technical analysis above that the bulls are losing the battle to the bears.
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Weekly Live chart of GBP/USD
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Another sign of weakness which is the second sign was seen
in the weekly GBPUSD technical analysed chart above which further suggests that the bulls are losing in the
fight to the bears. In the weekly live chart above, the three candle sticks that
proceeded each other from candle A to B closed above the Bollinger band upper band
and candle stick C was a huge candle
stick and it also closed above the Bollinger band upper line. Also, the trend line
has been broken and a retest of the trend line is occurring. Based on my technical analysis on the
weekly GBPUSD chart, it has confirmed what the GBPUSD monthly live chart
indicated that the bulls are losing out and a major trend reversal is around
the corner.
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| Forex Daily live Chart of GBP/USD |
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| Forex Daily live Chart of GBP/USD |
In the live GBPUSD daily chart above, my technical analysis shows the trend line has been
broken and the trend line is being retested at the moment. Failure of the bulls
to push the price up and the bears taking over after the retest of the trend
line will suggest that a lengthy trend reversal is around the corner. Already,
the trend has been retested as shown in figure A above in the GBPUSD daily
chart. The candle A is a bearish candle stick and its forming below the broken
candle stick and if the candle stick closes a healthy bearish candle stick,
then it’s time to go short. That is how easy forex technical analysis can be.
Where to place your
target (take profit)
Since there is going to be a major trend reversal, as shown in the technical analysed chart, one that is
capable of going for about a thousand
pips before reversing, I suggest you target 1.59157 as your take profit as
shown on the GBPUSD daily chart above.
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