GBPUSD - Price entered Overbought Zone (RSI) - near Resistance
Hi Traders!
The market is in a shortterm Uptrend.
As you can see on the left hand side, there is a descending Trendline.
After the market made a Low (reference green arrow) it went up and broke the Trendline.
This Uptrend has continued even more, until the RSi indicated, that the market is overbought.
After the first RSI signal, the market moved up higher for 60 pips.
Then it turned back.
The Downtrend continued, until the market reached the last Low again.
From there, it started raising.
Additionally, it broke the Trendline.
Since there, it is moving up.
And just shortly before, the market gives the overbought signal.
Now the only thing to find out is how long it'll take to turn back.
As the last Low was a lower Low, we believe that this time, the price will make another lower Low.
That's because the weekly chart also indicates some kind of Trend Change (to a Downtrend).
The beginning of the down-movement could be identified by components like the structure, the volume or any patterns.
Thanks and successful Trading :-)!
The market is in a shortterm Uptrend.
As you can see on the left hand side, there is a descending Trendline.
After the market made a Low (reference green arrow) it went up and broke the Trendline.
This Uptrend has continued even more, until the RSi indicated, that the market is overbought.
After the first RSI signal, the market moved up higher for 60 pips.
Then it turned back.
The Downtrend continued, until the market reached the last Low again.
From there, it started raising.
Additionally, it broke the Trendline.
Since there, it is moving up.
And just shortly before, the market gives the overbought signal.
Now the only thing to find out is how long it'll take to turn back.
As the last Low was a lower Low, we believe that this time, the price will make another lower Low.
That's because the weekly chart also indicates some kind of Trend Change (to a Downtrend).
The beginning of the down-movement could be identified by components like the structure, the volume or any patterns.
Thanks and successful Trading :-)!
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