GBP/USD Crashes 5 Cents Lower After A Bearish Reversing Pattern Below 1.35

GBP/USD is facing 1.30 after reversing down form 1.35

The bullish momentum should be over for the GBP

[[GBP/USD]] has been bearish in the long run, but it turned bullish after reversing from the initial coronavirus crash, which sent this pair tumbling 18 cents lower, from 1.32 to 1.14. Since then, this pair has climbed nearly 21 cents, getting pretty close to 1.35.

But, on September 1, EUR/USD reversed down form 1.20 and GBP/USD turned lower form 1.35,as the USD buyers returned. The price formed an upside-down hammer candlestick on the daily chart, which is a bearish reversing signal after the bullish trend.

GBP/USD reversed down from there and has been declining for a week, losing nearly 5 cents, as it fell close to 1.30 earlier today. The 20 SMA (grey) tried to hold as resistance, rejecting the price in the first attempt and this pair formed a pin above that moving average.

But the Brexit issue is weighing on the GBP again, as we get closer to the leaving date with no trade deal in sight between UK and the EU. The big round level at 1.30 held as support initially, after having provided support during the first week of August. But, with such headlines regarding Brexit, I don’ think that 1.30 will hold on for too long, We will try to sell retraces higher, but they have been very weak so far.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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