GBPUSD price has responded to the test of the resistance boundary of the parallel channel on the daily chart. This test has prompted a surge of selling activity, resulting in a decline in price.
The current bullish trend for GBPUSD began with a price reversal in April when the bearish order block failed to contain the price on the daily chart. This uptrend has been supported by a bullish market structure, including tests of bullish order blocks.
The price test of the bullish order block at 1.2600 occurred when the Stochastic indicator was oversold, leading to a significant price surge toward the resistance boundary of the parallel channel. The ascent to this resistance created a bullish order block along the way. However, selling pressure intensified at the resistance boundary, with the Stochastic showing an overbought condition, which resulted in a dip below the bullish order block.
GBPUSD Short-Term Trend: Bearish
On the 4-hour chart, the market structure appears bearish. Although the overall trend on higher timeframes remains bullish, the bullish order block has been invalidated. It is prudent to wait for a clear bearish or bullish Break of Structure (BOS) before drawing definitive conclusions about the trend direction. Accurate crypto signals require confirmation through such structural breaks.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
