GBPUSD has been in a bearish market forming lower lows and lower highs. This gives us an opportunity for the market to breakout and retest and continue trend. That being said, market broke the strong support level at 1.1730 and is now retesting it, forming a bearish pinbar. Once a bearish pinbar or engulfing is formed, we will take a short position from here.

The ascending trendline is being formed and the market has the strength to break out sell from the trendline. After the validation, we may see a potential leg downwards.

The retracement area with the confluence level of resistance is at the 61.8%. This means, we have a double confirmation for the market to continue moving down.

EMA 50 is still bearish. This bearish moving average is getting flatter, which means, we may see a slight retracement or even a pullback. If the curve gets steeper, we may have another short position downwards.

RSI is at 43. This is in the bearish region below the neutralized levels. At the retest of the 50 level, we will have a further confluence of the market resistance with retracement and also the RSI. Therefore, a good opportunity for the market to continue moving down.

GBPUSD still short

Aug 30 2022