After an uptrend, the Gravestone can signal to traders that the uptrend could be exhausted and that long positions should probably be exited. These price declines moving in taking supports at channel base to attempt of recoveries but not beyond channel resistance.
Since we always keep urging not to jump the guns, technicals should not be studied in an isolation. So other indicators should be used in conjunction with these indications to determine an accurate sell signal. A potential trigger could be a break of the upward support with this pattern.
Convergence on oscillators: To substantiate the reversal stance, leading oscillators are also converging downwards with current falling price fluctuations; you can figure this out from monthly chart. The current prices have shown their impact of this candle patterns on . The pair has fallen from the formation of 1st at 2.2370, even broken up to 2.0789 levels.
on monthly is currently trending near 62.2002, while %D crossover on slow still maintains around 70 levels that signify momentum is continuing in long run.
Daily price actions: Daily prices are well below moving average curve. We maintain our stance on this pair as the current spot prices have been well below moving average curve that signals us long term is on the cards.
The pair has pretty much responded as per earlier analysis as well and we could now foresee a little bit price bounces in near term as the suggest some buying interest that would result in some price recoveries but we maintain our target at 2.0380 levels in short run and towards further southern directions up to 2.0030 mark in medium run.