Will GBPUSD be in down trend?

Hi,

I'm a newbie to this forum and to forex trading too - been learning since march this year.

I am using various signals including SMA. Daily GBPUSD has been trading above the 10 and 20 ma since april, but twice this week it has tested and gone below 20 ma, although it hasn't yet closed below it. imho, a close below the 20 could signal a potential down trend?

Hi Pipiness,

If only it was that easy to see a change of trend! I think you would be better off using trendlines to measure trends and possible trend changes.

Regards,

Dan

I think GU still move sideways for several day / week, 200 - 600 range

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S + R = $$$

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It will go up to ~1.75 in July and then down again. But that's my opinion and could be wrong of course.

Hi,

Thanks for the advice.

On my chart setup the trendline and the 20MA are very close at the mom. Stchstcs show new upline, RSI: 50. And there's a descending triangle formation which has formed over the last couple of weeks which I will watch with interest.

remember, there is nothing certain in the markets. institutional traders use news as an excuse 2 push prices 2 where they want. some big fish trader around the world may had a different idea. u think it will go down, then it goes up.

Below is quote (yesterday) from NewstraderFX

'I'm going to be keeping an eye on this trend line-a break and close below it signals further weakness for the pound.'

That's what I meant when I was talking about the MA's in my earlier post. Because the 20 MA was acting like a trend line, I considered that a break below it (for the first time since 28 April) could be a strong suggestion of weakness in the pound.

So,Dan, it wasn't such a rubbish comment after all!!

Hope you all had a good day with the gu.

I'm sorry but could you tell me where I said your comment was rubbish? You asked a question and I politely replied.

Also, the importance of this area is not because of the moving average, which is an indicator made up of past data, it is because 1.6250 is an important level of support/resistance that also coincides with a trendline.

Dan

I think you got your answer on the direction of the GBPUSD. I for one dont know why it is appreciating. Things are very bad in the UK and a strong currency is not helping. Huge unemployment, huge debt, directionless government - all these are fundys that say the gbp should be at 1.35 area.

in any case we need to watch the reversal patern on the daily today closely.

Secondly if fear come into the market (stocks) then watch out below.

sure, it might. I will be buying like crazy at 1.6200. Everythink looks bad for the cable, but do I care about that? No. What I want is to make a few pips, just like everyone else here.