The failed breakout on GBP/USD’s daily chart is painting a bearish picture. The daily chart also shows an impending golden cross, a bullish development. The latter is a lagging indicator and often traps buyers on the wrong side of the market. GBP/USD’s daily chart is reporting conflicting technical signals. To start with, the pair fell 0.58% on Friday, invalidating a bull flag breakout – a continuation pattern – confirmed on Nov. 19. A failed breakout is widely considered a powerful bearish signal. Even so, some technical traders may be reluctant to sell, as the 50-day and 200-day moving averages look set to produce a golden crossover in the next couple of days. A golden cross is a sign of long-term bull market, according to technical analysis theory. In reality, however, it is a lagging indicator and often marks interim tops. Hence, the failed flag breakout takes precedence over the impending golden cross. Put simply, the probability of the pair falling to levels below 1.28 is high. Currently, GBP/USD is trading at 1.2846. Daily chart Trend: Bearish Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Ongoing consolidation in Gold is healthy – UBS FX Street 3 years The failed breakout on GBP/USD's daily chart is painting a bearish picture. The daily chart also shows an impending golden cross, a bullish development. The latter is a lagging indicator and often traps buyers on the wrong side of the market. GBP/USD's daily chart is reporting conflicting technical signals. To start with, the pair fell 0.58% on Friday, invalidating a bull flag breakout - a continuation pattern - confirmed on Nov. 19. A failed breakout is widely considered a powerful bearish signal. Even so, some technical traders may be reluctant to sell, as the 50-day… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
