Trading Signal For GBPUSD
After doing my trend analysis for the GBPUSD, the trend for this pair is UP.
If you do a chart analysis on the hourly chart, you will find that the price is currently moving within a trend channel.
This shows that the price is in a state of consolidation at the moment and this usually happens after the price has made a sharp upward or downward movement.
If you do a technical analysis on the 4 hourly chart, you will find that the price has fell due to the formation of a negative macd divergence. However there is a strong support at 1.60796.
Overall Analysis
I will wait for a signal to enter a LONG trade to ride the trend. However if the price manages to break below the major support with valid breakout, I will also enter a short term SHORT trade.
MACD Positive Divergence For EURUSD
The price has formed a MACD positive divergence on the hourly chart last week that leads to the upward movement on Friday.
However the price is currently being resisted at 1.31137 by a combination of M3 Daily Pivot and 0.382 Fibonacci level which makes the level more stronger.
After doing a trend analysis on the various time frames, it looks like the trend for the EURUSD this week is DOWN. However there is a strong support at 1.30484.
If the price manages to break below the 1.30484 level, I will enter SHORT for this pair to ride on the down trend.
EURUSD Hitting Major Resistance After Strong Upmove
Although there is a strong upmove last week, the trend for the EURUSD remains DOWN for this week due to the strong bearishness on the Daily and Hourly Chart.
The price is now being resisted by several strong resistance at the moment. On the hourly chart, it is being resisted by a confluence of major swing and a R2 daily pivot.
On the 4 hourly chart, the price is being resisted by the Fibonacci 0.382 level.
As a whole, I will look to go SHORT for this pair. Unless the price manages to break above the major resistances with valid breakout, I will look to go LONG.
Double Top Formation Broken on EURUSD
After the price manages to break the neckline of a Double Top formation with a valid breakout, the price has fell by about 180 pips.
The price is currently being held by a strong support at 1.31920 level. In fact, the price has tested this level for the 8th times in a row.
What I will do is to wait for the price to break the support and then enter a SHORT trade to catch the momentum.
Railway Track Candlestick Pattern With Fibonacci Resistance
The price has dipped by 200+ pips last week after the MACD negative divergence that I have informed you guys. I hope that there are some of you who have made some profit from the movement.
In this week analysis on the 4 hourly chart, the price has in fact retrace and is now being resisted by a Fibonacci 0.382 level. More importantly, the price also produces a railway track candlestick pattern which is a sign of reversal.
Therefore I will look to go SHORT again for this pair as the overall trend is also DOWN for the EURUSD this week.
