Seeing today's high test bar close rejecting a past level acting as both support and resistance within close proximity of a Fibonacci cluster (38.2% and 50%) drawn from two previous swing/cycle highs and rejecting the falling trend line for a third time highlights this end of day set up as a potential selling opportunity. Recent lower highs and lower lows signal a continuation of this new forming down trend after price failed to rally higher in the bull run up to May.
I'm looking at the cycles which seem to indicate possible momentum to the downside. I'm backing this with fundamentals which are hinting at a stronger dollar in anticipation of good jobs numbers at today's NFP, and weaker economic data out of the UK this week. Bottom line, I'm reading cycle structure and using fundamentals in this case to pair strong with weak for a higher probability trade. I could after all be wrong but I'm performing my analysis the way I've learned from professional trading school.
Peter128
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Not sure. GBPUSD daily is in an uptrend. USD is weakening... divergence on XAUUSD H1.