GBP/USD Downward Momentum is Maintained
- The GBP/USD Continues to Slide After Brexit Polling
- Short-term momentum is pointed lower, with the daily low at 1.4415
- Bearish distributions begin at 1.4415: Bullish reversals signaled at 1.4489
The GBP/USD has continued its descent this morning, after falling as much as 261 pips in yesterday’s trading. The catalyst for this decline has come on recent polling has suggested that a Brexit is potentially more likely than initially anticipated. So far, this news is still resonating in markets and the Pound has continued to decline against the majors. This leaving traders to look for the GBP/USD’s next major breakout.
GBP/USD 5 Minute GSI Chart
(Created using Grid Sight Index)
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Displayed above, the GBP/USD can be seen declining off the daily high at 1.45075. Over the last hour, the GSI indicator has signaled renewed bearish momentum as the pair has printed a series of lower lows. This shift in momentum has been denoted from the last historical distribution of prices pointing lower. After searching through 35,290,223 pricing points, GSI has indicated that price action has declined 12 pips in 55% of the 295 matching historical events. It should be mentioned that a move to the first distribution point would represent a new daily low for the pair near 1.4415.
Traders should watch for a reversal in the current moment, if prices advance 26 pips and reach the first historical bullish distribution marked at 1.4453. It should be noted that prices declined at least 24 pips in 29% of the historical price distributions. In this scenario, traders may begin looking for price action to challenge the lowest distribution point, depicted above at 1.3034. If prices move to this value, traders may look for GSI to signal a new downtrend, and begin targeting a drop to new daily lows under 1.3017.
What is GSI?
Grid Sight Index is a powerful big data indicator that can help you determine whether short-term trends will continue or reverse. GSI takes a snapshot of current price action and uses that to find similar events by studying millions of historical data points. Then it studies those events to show you how often the trend continued or reversed in the past.
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