GBP/USD Charts Potential Bearish Reference Candle On Weekly

Russell Shor, CFTe, MFTA FXCM

The below is the weekly chart of the GBPUSD. Cable has been consolidating for 2019 (blue rectangles). The RSI(9) has tended to oscillate around the 50 level as price moved sideways. However, a bearish bias seems to have recently manifested – last week’s candle looks to be a bearish reference candle (blue arrow). I.e. a candle with a lower high to either side of it. If this week’s candle closes below last week’s low (green horizontal) it will give weight to the bearish reference candle scenario. We note that the RSI(9) is attempting to pull away and south of 50 which would be a bearish development.

PM Theresa May is facing pressure to resign from within her own party. She is trying for a fourth time to get her Brexit plan passed and members of parliament seem to be losing patience. The 1922 Committee will likely urge her to step down before 15 June. May has promised to step down once parliament passes her Brexit deal even though it has already been rejected on three separate occasions. Moreover six weeks of talks with Labour also failed to get an agreement.

Past performance is not an indicator of future results.

CHART SOURCE: FXCM MARKETSCOPE 2.0

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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