GBPUSD just nose dived today and broke the support level. The pressure mounted on the pair for the bearish side was unprecedented and the market has to retest a certain point to continue moving down further. The formation has now turned bearish and the market has formed lower lows and lower highs on the pair to continue moving down.

The ascending trendline has broken out for sells and the market has validated the price action of candles.

The retracement level os 50% is where a new resistance can be formed and the market may continue moving downwards towards the 0 level on the bearish side.

EMA 50 is also bearish now and the market may or may not retest the EMA 50 at the retracement level we have drawn. Therefore, clear picture will be formed once the prices reach our desired level of shorts.

RSI is at 35. It needs to dwell back into the 50 level of neutralization and align itself with the price action on the charts.

Shorting GBPUSD on 50% retracement

Jul 27 2023