resumed its decline after an upward price correction. Now the pair is testing the support level / local minimum 1.2755. It is also necessary to note the presence of a local downtrend and large volume accumulation at the top of the graph. This means that institutional players have gained their positions at the top of the chart, which puts pressure on the price and is an excellent signal for the continued decline of the pound.

volume gbp

Nevertheless, short positions can be opened only after a confident and sharp breakdown of the support level of 1.2755. Moreover, the movement should be supported by a large volume, which will be a more accurate signal for entering the market. Stop loss should be set just above the breakout volume bar. The transaction potential is more than 130 points.

sell gbp

As for market sentiment, this technical indicator fully confirms our trading scenario for opening short positions on the pound, as most retail traders are in long positions (trading against the “crowd”).

sentiment

Review prepared

Olshanetsky Andrey

specially for ICMarkets

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