GBPMXN Potential Downtrend

GBPMXN CHART PRICE – GBPMXN DAILY

The British pound had a bad day yesterday as it lost 424 pips to the Mexican peso, with this loss the price is currently trading under the Ichimoku cloud, which indicates that the price could continue its downtrend in the near future, getting closer to its support level at 27.74, previously when the price has touched the resistance it tends to bounce back down to its support or very close to it before it starts recovering, we see that the conditions are there for this to happen, however we are expecting news from the UK at 1:00 am (US Central Time), this could move the price even lower or drive it up to its resistance once again, if you are not a news trader stay out this pair during that time as we expect volatility for most GBP pairs, nothing too aggressive, but it will definitely move the markets. The Relative Strength Index recovered 1% from yesterday as the price has gone up a few pips, currently at 48%, the Bollinger bands are wide and flat, this could change in a few hours when news traders start opening positions later tonight.

This post does not provide Financial Advice for traders, its merely purpose is education, use all the information available from different Analysts and build your own strategy, trading is not for everyone, you should only trade with money you can afford to lose, past performance is not an indicator of future results.