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British Pound Technical Analysis: Is the Trend Intact for GBP/USD?

December 10, 2021

Via: DailyFX

GBP/USD breached below a descending trend line last week. It has been trending lower since it made a high in May at 1.4250.

A bearish triple moving average (TMA) formation requires the price to be below the short term simple moving average (SMA), the latter to be below the medium term SMA and the medium term SMA to be below the long term SMA. All SMAs also need to have a negative gradient.

Looking at the 10, 21, 34, 55, 100, 260-day SMAs, they are all in sequence to meet the criteria for a TMA and all have a negative gradient, with the possible exception of the 260-day SMA.

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