GBPUSD Huge Downside Potential! Hi fellow traders!
GBPUSD has currently been a very quite pair to trade over this week, with very little movements in the market.
After the last call regarding GBPUSD to the upside following the UK's extension for Brexit, at the EU summit, it was a shame to see very little momentum to the upside.
In terms of fundamentals, there has also not been much developments with regards to Brexit for the £ to strengthen, so I doubt there will be any upside moves as of now.
Regardless, looking back at the chart posted, a descending bearish triangle has been forming.
Moreover, there is a blue base support line drawn - price could head to here for a retest of this trend line if all green support regions (these are based off the 1H time frame charts) are taken out.
Leaving aside the huge wicks to the downside, it does seem like we could be looking for a push to the downside, if the support level is considered as shown in the chart above on the 1D from body to body candlesticks.
Also, on 12/04/19, we saw GBPUSD test and drop from the diagonal purple resistance trend line from the descending triangle pattern - this should consolidate the idea that GBPUSD should look to sink.
RSI on the 1D is neither oversold or overbought, and it is currently around 50.0, meaning price could fly either way.
I do this this potential does now have the chance to move to the downside, ideally to around 1.30000 / 1.29950.
Targets:
TP1 - 1.30295
TP2 - 1.30200
TP3 - 1.30080
TP4 - 1.29950 (Around this region)
I think if all these targets are met, it could mean a nice long position for this pair after!
Good luck trading!
If you read it to all the way down here, thanks for showing some support to this article! Tell me where you think GBPUSD will be heading next! Comment below all your ideas about the future of the Pound! Buy or Sell and why? Additionally, drop me your charts/ideas for it, that'd be great so I can see where you are coming from. I'm a new guy to the FX, Stocks & Crypto market, and I'd appreciate any help people may offer!
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