Weekly Trading Signals – August 3, 2013

GBPUSD: Sell

There is now a bearish signal on the Cable, following the Bearish Confirmation Pattern that has occurred on the chart since Tuesday 2013. The price has gone below the EMA 21 and the RSI period 14 is below the level 50. With some informed chart analysis, it could be said that the price could go further southward towards the accumulation territory at 1.4600 within the next several trading days and weeks.

In the meantime, any bullish attempts in the market ought not to take the price beyond the distribution territories of 1.5300 and 1.5400: otherwise, the current scenario would be rendered invalid.

On the other hand, as the currency instrument moves in a dominant bias, it may soon pause temporarily, trade in a tight range as the momentum thins out, and at last, the bias would be ended as another one begins (or the bias would be resumed). So eventually, it is either the price stays below the EMA or break it above.

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