Forex Trade Signal – Chart of the Week Aug 11th

GBPUSD – About to break?
After two months above and 8 touches off the 20ema, the pair looks poised to break the 20ema for the first time this summer.  It is heading into the 20ema with its strongest 3-day decline since the middle of May and is coming off its most aggressive selling day since.

Although the pair has tested it once and bounced 80pips off of it from the first time, its already getting close to breaking it again.  A close below on the daily chart opens up technical models and will likely activate a fresh round of shorts.  A likely target would then be the Kijun which is sub 1.5500.  Below here, the pair could make a move for a touch on the Kumo which would be around 1.51/5200 so some strong losses could be in store.

If you would like to find simple high-probability trades using pivots and price action only, you can check out the Advanced Price Action or the ProForex Course which will teach you rule-based proprietary systems to trade these profitable setups.

Buddhist, Trader and Philanthropist

Chris Capre, Founder of 2ndSkiesForex, is a professional trader who specializes in trading price action. His blog attracts 150,000+ monthly readers across 110+ countries, including; Australia, USA, Singapore, UK, Canada, & Germany. To discover more about Chris’s Price Action Strategies, visit his Price Action Course page.

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