Overbought GBPUSD? Three advancing blocks
Whilst the Moving Averages and current trends direction is bullish, we can ask ourselves if this could be a turning point for GBPUSD. Chances are it wont and new highs are to be made. However the three advancing blocks (3 weak white soldiers of last 3 candlesticks) combined with the Elliot wave theory (marking the trend as a possible last wave 5) and the overbought RSI (nearing 70) may give a reason to short.
The last daily bar has a small volatility and the signal for shorting is below its lows at around 1.7130.
Such a trade is against the trend (ie against directions probabilities) hence tightening the stoploss upon a movement down is to be considered.
What makes such a trade attractive is the perceived Reward-Risk ratio.
Just an idea.
The last daily bar has a small volatility and the signal for shorting is below its lows at around 1.7130.
Such a trade is against the trend (ie against directions probabilities) hence tightening the stoploss upon a movement down is to be considered.
What makes such a trade attractive is the perceived Reward-Risk ratio.
Just an idea.
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