Thursday, June 4, 2020

Bearish Setup On GBPUSD

Marco Tosoni

FХ Strategist & Financial Commentator

After recording the historical bottom around 1.15 area in mid-March, a strong bullish rally has started, culminated with a double top nearby 1.2650 area followed by a new bearish correction towards 1.2080 area until the middle of May, when in the previous video I showed you a winning bullish signal, with the last swing to push the quotes again to the previous resistance area, with a triple top formation.

During yesterday’s session anyway, we had a first correction, setting a daily shooting star candle with a closure around 1.2580 area.

A bearish setup was consequently set on the RSI, that combined with the test of the major resistance around 1.2650 area could favour a technical correction. The Average True Range on the other hand is currently working around the 2019 levels, showing a convincing stability after the previous storm.

The bearish setup would be activated in case of a breakdown of yesterday’s bottom at 1.2520 area, with a stop loss to place at 1.2680 above the major resistance. The target price on the other hand could be expected at 1.2360 area close to last week’s closing area.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

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