GBP/USD Death Cross on major time frame

We had the proverbial “Death Cross” in GBP/USD, where the 100-day dipped below the 200-day SMA.

Caution is required when trading on a Death Cross signal, since contrarian traders may take contra-trend trading opportunities in the market. A noteworthy technical observation: the distance between recent highs and the crossover level has been less than three times the GBP/USD daily ATR(14), providing a selling opportunity to attack the key spot level in a corrective upside movement.

GBP/USD Death Cross on major time frame

(Market News Provided by FXstreet)