GBPUSD – Who says UK will not devalue to 18312 first then nose-dive 1.8112?



ForexSurvivor Bearish Divergence of GBPUSD is getting some early messages of the upside beginning to run out of steam & now looking to decline for the next 10 weeks. However, following that we can expect the upside (19275/19343) to come under renewed pressure. It is interesting that ForexSurvivor closing juncture has been broken and now retested, where this tends to confirm the conjecture that there is beginning to be some downward pressure beginning to build up.




Rallying to the expected upside implies an expanded correction, while breaching 18532 leads to 18112. By all means 18312 will be screened shortly either from 19275/19375, or from below 18532.






Traders Chart Analysis: Looking at the chart, it is very easy to depict trend lines, and find momentum that drags on premature determination trend. But the question which remained unsolved throughout trading epoch, why such charts do not hold more than 2 or 3 days?

Comparing the feasibility of GBPUSD chart, noting momentum needs to break up the downing trend line, so to allow UK depreciation. Already, price broke down the upward trend, and momentum is below zero, suggesting a short-term low is initiated!



Traders do like such analysis coz they want to believe that they are holding on something concrete. Asking themselves, are we seeing a Bearish Divergence?



Typically bearish divergence (price will make a new high, but RSI makes a lower high) & is marked by a rising trend line above the price action and a falling trend line on the RSI indicator.



The above chart is well familiar by every trader, so does the market allow such mass winners? Fundamentals will provide the answer, but it would be always either priced in or to be priced in after 2/3 weeks.

What might happen with traders?

• If the market levels to the upward trendline, traders sell with a stop loss above the triangle top.


• If the market doesn’t level to the upward trendline and broke the (ichi) support line, traders rush to sell using stop loss above upward trendline. What happens is that the market doesn’t depreciate when traders psycho spur the response, so price rebounds targeting stop loss.


• Traders observe the Bearish Divergence, so they hold their shorts that start with below the upper trendline, and they add to it once top upward trendline is priced. So they expand their stop losses range above that top. The market well aware of such trading, and only to find out that breaking and closing above the top triangle is created. Positions are closed, after few days of narrow consolidation, reports show on with a FALSE BREAK image. By then, traders are cursing their trades and wishing only a say “I wish”.

*** The whole above explanations show GBPUSD as bearish routing, but in the next 2 weeks, ForexSurvivor >signals are to be issued as Bullish. To know more about the GBPUSD routing in the next 2 weeks, you may pass www.forexsurvivor.com a visit.