Price has broken the supporting trendline to indicate a potential trend reversal. We were then patient and waited for further bearish conformation but didn't get any. Instead we witnessed price move up the trendline using it as new found resistance.
Now we have seen some increased bearish pressure and have closed under the 50EMA. Historically, this has resulted in another bullish movement as we watch price reject the MA. Since we have closed below this, we can take this as another piece of evidence to suggest that the bears are regaining control.
Since it is still very possible for the bulls to try and force price back up, we have set a SL above the last zone of resistance.
It is fundamental we remember to use the correct leverage entering this trade as GBP/USD has been indecisive for the last few days.
Now we have seen some increased bearish pressure and have closed under the 50EMA. Historically, this has resulted in another bullish movement as we watch price reject the MA. Since we have closed below this, we can take this as another piece of evidence to suggest that the bears are regaining control.
Since it is still very possible for the bulls to try and force price back up, we have set a SL above the last zone of resistance.
It is fundamental we remember to use the correct leverage entering this trade as GBP/USD has been indecisive for the last few days.