Weekend Analysis on GBP - Is it toppish?
Weekly Analysis – GBP
The GBPUSD approached and got resisted by the 200-day moving average at 1.2730. The stronger than expected Final Services PMI and an upbeat US employment data kept the positive sentiment and pushed the pair up the whole week. The improving Covid-19 situation in the UK is marred by the no progress in the Brexit negotiations. The COT reports showing speculators raising their bearish for the 13th consecutive weeks.
GBPUSD H4 Chart
We took a hit last week on the GBPUSD trade. The trade could have been avoided with the filters applied to the charts. Breaking the trading rules will naturally come bite us back. Anyways, on to the next trade, with the resistance by the 200 DMA and bearish candles forming at those resistance zones, charts are showing us that there could be some bearishness in this coming trading week.
GBPUSD H1 Chart
We could potentially be seeing some toppish charts now. Support trendlines getting steeper and now Bearish RSI divergence showing on both the H4 and H1 charts.
GBPJPY H4 Chart
GBPJPY has been on a very strong rally. However, the charts are showing some exhaustions towards the end of the week. RSI bearish divergence on the H4 and H1 charts. We should probably wait for a bearish reversal pattern to form first before looking to take a short.
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