Indicator | Value | Signal |
RSI | Neutral | |
MACD | Sell | |
MA(200) | Sell | |
Fractals | Neutral | |
Parabolic SAR | Sell | |
Bollinger Bands | Sell |
On the daily timeframe, GBP_Index: D1 broke down the neck line of the Head-Shoulders technical analysis pattern and a 200-day moving average line. A number of indicators of technical analysis formed signals for a further decline. We do not exclude a bearish movement if GBP_Index falls below its last lower fractal and lower Bollinger line: 1.358. We can use this level as an entry point. Stop loss is possible higher than the last upper fractal and the Parabolic signal: 1,408. After opening the pending order, we move the stop loss tracking the signals of Bollinger and Parabolic to the next fractal maximum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of trend. If the price overcomes the stop level (1.408) without activating the order (1.358), it is recommended to delete the order: there are internal changes in the market that have not been taken into account.
Fundamental Analysis
In this review, we propose to consider a personal composite instrument (PCI) & GBP Index - GBP currency index. It reflects the price dynamics of the British pound GBP against a basket of major currencies. Will GBP_Index quotes decrease?