By Anton Eljwizat – The GBP/USD has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 8 hour chart signals that a bearish reversal is imminent, and it might have the potential of reaching towards 1.5700 in the coming days. This might be a good opportunity for forex traders to enter the trend at a very early stage and a great entry price.
• Below is the 8-hour chart of the GBP/USD currency pair.
• The technical indicators that are used are the Slow Stochastic and Relative Strength Index (RSI).
• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
GBP/USD 8-Hour Chart
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