GBPUSD - Downward trend will continue, Short trade by market price recommended

April 12, 2019 6:42:51 AM by Alexander Zorevyk
Forecast Details
PairGBPUSD
Direction Sell
StatusClosed (1.31)
6:04
6:00
Apr. 12, 2019

-40 p
1.3100
Stop Loss
1.3060
Entry
+40 p
1.3020
Target 1
Chart & Analyst Comments
GBPUSD - Downward trend will continue, Short trade by market price recommended

For today's forecast, we recommend a sell order at the current market price. This idea is based on the following analysis:

  1. According to the most brokers’ data, more than half of the traders are currently in long positions on GBPUSD. As a result, we recommend considering going only short at this time.
  2. The last upward movement was characterized by a “surge” in retail buyers. This is a good reason to start thinking about short positions.
  3. The Profit Ratio indicator is not responding to a downward movement, this means that the movement is valid.
  4. In the right order book, we see the volume of loss buyers above the current price. This cluster can act as a resistance.
  5. In the left orderbook, we see a cluster of stop losses and stop orders right at the level of the previous support. This is a good level for placing take profit according to our forecast.