FxWirePro: Don’t jump the guns with GBP/AUD extending gains – bearish patterns confirm dips underway

The pair has pretty much responded as per earlier analysis as well and we could see a little bit price bounces in near term as the daily chart suggest some buying interest that would result in some price recoveries but we maintain our target at 2.1185 levels towards south.

We traced out bearish gravestone doji patterns at around 2.1552 levels on monthly charts as well as on weekly charts at around 2.1458 and again on 2.1586 levels. These bearish pattern dojis are an extremely helpful for traders visually to see where resistance and supply is likely located and you can see their effects on daily price dips.

After an uptrend, the Gravestone Doji can signal to traders that the uptrend could be over and that long positions should probably be exited.

But other indicators should be used in conjunction with the Gravestone Doji pattern to determine an actual sell signal. A potential trigger could be a break of the upward trendline support with this doji pattern.

To substantiate this reversal stance, leading oscillators are also converging downwards with current falling price fluctuations; you can figure this out from monthly chart. The current prices have shown their impact of this bearish candle patterns on daily chart. The pair has fallen from the formation of 1^st doji at 2.2370 up to 2.0789 levels.

RSI on monthly is currently trending near 72.5767, while %D crossover on slow stochastic still maintains above 80 levels that signify bearish momentum is continuing in long run. We maintain our bearish stance on this pair as the current spot prices have been well below moving average curve that signals us long term bearish trend is on the cards.