Moving forward after we analyzed the inverted head and shoulder chart pattern on the 3rd of December 2019(
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Price has touched all targets to the upside and is currently facing a strong resistance level. On the daily time frame chart, the price chart of GBPUSD has been spotted forming a bearish reversal pattern called THE BEARISH DIVERGENCE.
As a trader the first thing that comes to your mind is the use of Oscilator to look at the price trend, but sometimes a most of these indicator will disagree or “fight” with the actual price action of the currency being analysed. This is called the the bearish divergence, when the trend of price is going to a different direction from the Oscilator(RSI)
When price is making a higher-highs- and the oscilator(RSI) is making a Lower-highs, this calls for bearish reversal to the down side to find the nearest support level. Looking at the previous pattern spotted on the 3rd December 2019, the nearest support will be the previous neckline(the resistance) before price broke out.
Breakdown level: $1.31213
Support 1: $1.30963
Support 2: $1.30557
Support 3: $1.30005
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice.
The above mentioned currency can be traded on primexbt.com
For more educational content, follow us on youtube:
www.youtube.com/chan...0C03Gy8uHyKr-Y59cwJg
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Price has touched all targets to the upside and is currently facing a strong resistance level. On the daily time frame chart, the price chart of GBPUSD has been spotted forming a bearish reversal pattern called THE BEARISH DIVERGENCE.
As a trader the first thing that comes to your mind is the use of Oscilator to look at the price trend, but sometimes a most of these indicator will disagree or “fight” with the actual price action of the currency being analysed. This is called the the bearish divergence, when the trend of price is going to a different direction from the Oscilator(RSI)
When price is making a higher-highs- and the oscilator(RSI) is making a Lower-highs, this calls for bearish reversal to the down side to find the nearest support level. Looking at the previous pattern spotted on the 3rd December 2019, the nearest support will be the previous neckline(the resistance) before price broke out.
Breakdown level: $1.31213
Support 1: $1.30963
Support 2: $1.30557
Support 3: $1.30005
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice.
The above mentioned currency can be traded on primexbt.com
For more educational content, follow us on youtube:
www.youtube.com/chan...0C03Gy8uHyKr-Y59cwJg
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