By Anton Eljwizat – The pair has recorded much bullish behavior yesterday. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 4-hour chart signals that a bearish reversal is imminent, and the cross may tumble 40-110 pips during the day. Traders are strongly advised to take advantage of the trend at an early stage.
• The chart below is the 4-hour GBP/JPY chart by ForexYard.
• The technical indicators used are the Slow Stochastic, MACD, and Relative Strength Index (RSI).
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
GBP/JPY 4-Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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