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  • GBP/USD is trading just under flat for the session after trading higher for most of Wednesday.
  • The pair took a dive after the FOMC rate decision and accompanying press conference.

GBP/USD 30-min chart

If you have been looking to short trade GBP/USD it has been hard to find an entry as the market has been pushing higher day after day relentlessly. On this chart, I have highlighted the divergence on the chart but there have been many occasions that a divergence has turned up but the market still continued with its uptrend. 

The market has just pushed through the 55 Exponential Moving Average (EMA) and now the 200 Simple Moving Average (SMA) is set in its sights. There are some other bearish indications on the chart as the Relative Strength Index has moved below the 50 line. The MACD histogram has also turned red and the signal lines are breaking below the mid-level too. 

If the daily chart closes anywhere near these levels then the daily candle could be shooting star candlestick (another bearish sign). At the moment there is no sign of a lower low lower high formation but there is still time for a few more bearish waves. The underlying trend is still firmly higher this move could still just be a retracement and some more confirmation is needed before we can confirm a trend change. 

Cable short trade



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