A bearish technical development has been detected in GBP/USD, namely an intraday “Death Cross” formation.

This technical event consists of a cross of the 100-period below the 200-period moving averages. This per se rare event, becomes extremely rare if the pair has witnessed a meaningful correction before or during the cross. This bounce allows trend-following GBP/USD traders adhere to the trend at fair valued prices following an otherwise very risky signal.

GBP/USD intraday “Death Cross” formation

(Market News Provided by FXstreet)

By FXOpen