Forex forecast GBP/USD | Our expectations:
A likelihood of short-term downward movement, as the price reached levels of horizontal and diagonal resistance. The pin bar with long upper shadow increases the probability of downward movement. Fibonacci 38,2 of the big downward movement has not yet been reached, but will make the new long positions irrational. DeM (14) is in a highly overbought market and gives indications of reversal - a sign of a likely downward impulse. We need to wait for a correction to minimize the risk, at least 50% on the pin bar around 1.3590 with a stop at 1.3700.
Alternative Scenario: If the price passes above the top of the pin bar, this will cancel the negative scenario, but the upward movement is rather steep, and for long positions we have to wait for a correction.
Trader Nikolay Georgiev
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