What goes UP, Must come DOWN !

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBP : 60min Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

After been bitten by the bull candle on Tuesday 0800hrs, price oscillated and came back down some 24hrs later to where it started, providing us with a further lower low on the 60min chart. For the last 3 days between 0700-0900hrs we have been given a lower low. What will happen tomorrow morning ?

If you look at RSI, can you see that the 3 lower lows on the chart have very distinctive bottoms on the RSI, what you may not realise is that on the RSI they are not lower lows and therefore they are showing us convergence.

We are in a down trend, and looking to go against the trend which is not normally in a "Dynamic Traders" psyche.

MACD is above the signal line and on the verge of crossing the zero line.

We have resistance at present on price with a EMA, which is shadowed by the stronger retail price index.

I have drawn a parallel trend line and a BOB with ESLT would be our chosen entry method.

Please do your own analysis before entering the trade.















Courtesy of Advanced Get / E Signal

Check our other blogs, online

http://www.fxcps.eu/
http://www.fxcps.co.uk/blog
http://www.fxcps.com/blog/

Trade with Passion

John Maher
Forex Analyst