GBPUSD is in downtrend but is oversold
GBPUSD’s EMAs are in a bearish formation. The green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. This is typical of a mark-down phase in the cycle. However, we do note that the RSI(9) is at 15.33 and is considered oversold (blue rectangle). Therefore, the risk:reward setup is not as beneficial as one would like if a short position was to be considered. It is possible that we may see a halt or a pullback as the oscillator normalises.
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