GBPUSD - BEARISH TREND

The GBPUSD had significant bearish momentum yesterday. The pair bottomed at 1.5940 and closed at 1.5980. On weekly chart we can see that this week movement formed a “shooting star” candlestick pattern which technically a bearish formation. We also can see that the upper shadow of the “shooting star” ended at important (strong) resistance around 1.6670 area (low of October 05 week end and highs of October 26 week end) before slightly fell to the downside. At the same time, weekly CCI in overbought area and heading down suggesting a potential downside pressure. For the upcoming week, any consistent movement below 1.5910 area ( 23.6% Fibo retracement of 1.3502– 1.6662) should support the bearish scenario and trigger further bearish momentum towards 1.5454 area.

To support this bearish trend you can see GBPUSD daily chart where it formed Three Black Crows and at the same time this pair has reached Overbought zone on 60min and 240min chart, which clearly signifies the strong reveral trend in GBPUSD.