5 Aug 2015
GBP/USD bulls are losing their breath
The graceful upward trajectory staged by the GBP/USD on the daily chart, finds an offsetting bearish harami, a pattern comparable to an Western inside bar.
Prices challenged the 21-period 2-standard deviation upper band by printing outside of its boundaries in the last two days. The bearish pattern also happens in the context of a 14,3,3-sensitive stochastic tracking above the 80 mark. Although this oscillator assumes that prices tend to close near their high in an upwardly trending market, it should now react with any eventual daily close near the lows.
Traders might seach for this price confirmation as well as an invalidation of the pattern in the form of a new daily high.
Prices challenged the 21-period 2-standard deviation upper band by printing outside of its boundaries in the last two days. The bearish pattern also happens in the context of a 14,3,3-sensitive stochastic tracking above the 80 mark. Although this oscillator assumes that prices tend to close near their high in an upwardly trending market, it should now react with any eventual daily close near the lows.
Traders might seach for this price confirmation as well as an invalidation of the pattern in the form of a new daily high.