GBPGBN forex technical analysis | Our expectations:
Downward trend and triangle formation, which will be activated at a break below 2.1630. Such a breakthrough would lead to a fall of a likely first target of 2.1520. SL must be above the upper diagonal resistance of 2.1855.
A positioning option is also a wait for a correction of up to 50 SMA or 2.1730, which will reduce the size of the stop and increase the risk of not responding to the negative scenario.
Price below resistances and moving averages 200SMA and 50SMA - negative signal.
DeM (14) is approaching a break below 0.3 - an oversold zone, and such a breakthrough can accelerate the downward impulse.
Fundamentals: European indexes have failed to take advantage of the Wall Street rally from yesterday, suggesting that something is worrying investors, most likely the development of the deal for Brexit. This uncertainty surrounding the UK's exit from the EU may lead to further declines in GBP, which is also the most likely short-term scenario.
Alternative scenario: If price breaks the triangle upwards this will cancel the negative scenario and we can expect a raise in the pair.
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