GBPUSD, Massive Bear-Market-Wedge Completed, TARGETS Active!

Hello There!

Welcome to my new analysis of GBPUSD. The GBPUSD developments recently have shown crucial bearish inclinations that should not be underestimated especially as the bearish volume increased there is a severe bearish momentum within the pair. Besides that, the Pound Currency Index is forming similar bearish downside pressure especially as the selling volume increased massively adding to an increased bearish indication.

Now, the most important considerations are if GBPUSD has completed a major formation that is going to increase the severeness of the upcoming trend dynamics, if GBPUSD is going to extend the dynamics in such a manner that a massive wave-extension will be inevitable, and if GBPUSD is one of the forex pairs within the market with an overwhelmingly high bearish edge so that a bear-market will be the most relevant part of the whole GBPUSD price action formation developments.

Firstly, when looking at my chart and the major formation that GBPUSD has completed here, this formation is a crucial formation as it is an already completed bearish continuation broadening-wedge-formation that formed the severe breakouts below the lower boundary of the formation. Such a formation is indicating a continuation in almost all of the cases especially as GBPUSD already marked the finalization of the completion with the coherent bear-flag-formation below the lower boundary which already activated the bearish target zones. Therefore, it should be mentioned that the formation that has been completed increased the severe bearish trend to a massively high level.

Secondly, with the completion of the major broadening wedge continuation formation GBPUSD already activated the minimum target zone as marked within my chart, this is the target zone of wave C within the whole bearish downtrend established by the broadening wedge. Especially, as GBPUSD also already confirmed the 35-EMA as a major bearish resistance this first target zone is going to be reached faster than determined. In this case, it will be important on how the actual bearish momentum is established because especially with a huge bearish pressure this is going to set up the bearish wave C extension and activate the second target zone. If there is not any sign of a reversal in this case the trend will just continue in the bearish direction through the bearish continuation ground.

Thirdly, when considering the bear market definition within the stock market, a legit bear market is confirmed when prices drop a minimum of -50%. With GBPUSD this definition is already confirmed when prices drop -25% divided by a leverage factor of 5. Through this bear market definition, GBPUSD is already in a bear market and there is no chance to reverse this dynamic if no fundamental changes happen here. Furthermore, GBPUSD is not yet in an oversold condition, an oversold condition is only reached when all of the sellers within the market sold all of their long positions or the positions got liquidated, this has not happened till now, and therefore the oversold condition has still a long way to be reached. Even with reaching all of the final bearish target zones, this is not going to show an oversold condition for GBPUSD therefore the bearish trend continuation is imminent.

In this manner, thank you everybody for watching my analysis of GBPUSD. Support from your side is greatly appreciated.

VP

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ANALYSIS UPDATE: GBPUSD is confirming the major resistances within the zone to emerge with the next bearish wave on increased bearish volume.

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UPDATE: Massive bearish momentum and volume are going to set up the trend acceleration for GBPUSD reaching the major target zones in a protracted manner.

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ANALYSIS UPDATE: GBPUSD greatly reached the initial bear-flag target zone on a major bearish volatility spike. ✔

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UPDATE: GBPUSD completed the main bear wave breakout setup.

GBPUSD is about to reach the final target zone projections with the next bear market waves. ✔