On the GBPUSD you can see that we had a very nice short signal at 1.3112, and the price has continued to drop hitting targets of 1.2916 with another target of 1.2648 sitting just below the August 14th reversal area.

Using the Pro-Trading System we can predict where the next reversal is going to come, by using the profit targets generated by the PTS. By using modern systems and good technical analysis we can safely say that there’s going to be major support around that 1.2650 zone.

That will create a major double bottom in the market, and we could see a reversal from there shortly after that price level has been reached.

The other alternative is that we are in a wave 3 to the downside, and we could soon get below 1.2648 and head more to the 1.2470 price where the PTS predicts the next profit target. If it is wave 3 then it’s going to be a very violent and aggressive move to the downside, with little relief rallies.

Another way of identifying whether the trend is going to be a powerful one or not is the angle of the moving averages, and you can see here the angles of the moving averages are nicely 45 degrees  

45 degree angles of lines or moving averages pop up everywhere in technical analysis. When the moving averages are not 45 degrees you tend to get sloppy choppy price action, but we don’t see that in the pound versus the US dollar.

 

If you’re looking to step into the world of online trading, we’d like to help. We offer both courses and mentoring opportunities to help you trade with skill and confidence. Come along to our free* Learn to Trade Live one-day course on Saturday 17th November in Manchester, or on Saturday 1st December in London, to really get your foot in the door!

*You will pay a £50 refundable deposit to secure your space for the course, which will be refunded the following working day after you attend.

 

Further Reading:

Online Trading For Beginners – Getting Started

How to deal with losses when trading

Forex trading for beginners – Five things you must know