GBPAUD sell trade let’s analyze the GBPAUD H4 chart from a bearish perspective.
Bearish Indicators:
Trend Analysis:
The overall trend on the H4 chart shows a shift towards bearish momentum, characterized by lower highs and lower lows1.
Moving Averages:
The price is trading below both the 50-period and 200-period Exponential Moving Averages (EMAs), which is a strong bearish signal2.
Relative Strength Index (RSI):
The RSI is below 50, indicating bearish momentum. If it continues to drop towards the oversold region (below 30), it could signal further downside potential2.
MACD (Moving Average Convergence Divergence):
The MACD line is below the signal line, and both are below the zero line, confirming the bearish trend2.
Support and Resistance Levels:
The price has broken below a significant support level around 1.9150, which now acts as resistance. A further decline towards the next support level around 1.8800 is possible3.
Candlestick Patterns:
Recent candlestick patterns, such as bearish engulfing patterns, indicate strong selling pressure3.