Deep Downtrend and Gap Analysis
The GBP/USD 4-hour chart shows a clear downtrend, with price consistently moving below both the 34 and 89 exponential moving averages (EMAs), which is a clear indication of the strength of the current downtrend. These EMAs are also acting as strong resistance levels, preventing any further price recovery.
From the chart, it appears that a gap has been created during the price decline. In the short term, if price starts moving back to “fill the gap” and breaks above this level, it could signal a reversal or at least some stabilization before resuming the current trend. However, if price continues to fall and fails to return to fill the gap, this would further reinforce the downtrend and could test lower support levels.
From the chart, it appears that a gap has been created during the price decline. In the short term, if price starts moving back to “fill the gap” and breaks above this level, it could signal a reversal or at least some stabilization before resuming the current trend. However, if price continues to fall and fails to return to fill the gap, this would further reinforce the downtrend and could test lower support levels.
Join my team to get free signal XAUUSD trades with up to 85% winning rate!
Every day, you will receive 5-7 high quality signals, helping you earn a lot of money
Click here to join the group: t.me/+2RkvhgfeFlkzZDZl
Every day, you will receive 5-7 high quality signals, helping you earn a lot of money
Click here to join the group: t.me/+2RkvhgfeFlkzZDZl
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.