The current market outlook on the GBP/USD

Forexmentor.com Forex Trading Price Action

Today, we’re going to have a look at the pound. Looking at all of the charts well before today’s session, all indications were that price action was on the rise – with the one possible exception being the 15 minute chart that displayed a price spike yesterday morning. Coincident with that was MACD going overbought.

These are two of the signs you look for when you are evaluating price patterns, and such behavior is usually a precursor to a downtrend continuation pattern unfolding. Sure enough, that’s exactly what we got. After price peaked yesterday, it went sideways in the price equilibrium/consolidation phase, whilst MACD neutralized. Then price collapsed in the form of Leg Two. Further, the 50x100x200 EMAs put in their back-to-back Death Crosses.

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