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.
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