{"id":13974,"date":"2010-10-13T10:30:03","date_gmt":"2010-10-13T14:30:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=13974"},"modified":"2010-10-13T10:30:03","modified_gmt":"2010-10-13T14:30:03","slug":"gbpusd-negative-divergence-shows-weakening-trend","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/10\/13\/gbpusd-negative-divergence-shows-weakening-trend\/","title":{"rendered":"GBP\/USD \u2013 Negative Divergence Shows Weakening Trend"},"content":{"rendered":"<p><strong>By Russell Glaser<\/strong> &#8211; Over the last two days the price of the GBP\/USD has pulled back from its test of the <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/09\/24\/gbpusd-technical-forecast\/\">1.60 level<\/a>. Signs of negative divergence appear on the daily chart signaling a weakening trend and a possible reversal.<\/p>\n<p>Looking at the daily chart, two trend  lines have been drawn. The short term trend line begins at the June low  (not shown) and the intermediate trend line starts in mid-September. The  second trend line was broke during yesterday\u2019s trading in a sharp  decline over the past two trading days. In today\u2019s European trading  session the GBP\/USD has climbed has high as the broken trend line and is  now acting as a resistance level.<\/p>\n<p>The daily chart highlights a potential reversal of the trend due to  the close below the trend line and also negative divergence that has  appeared on the Momentum (14) indicator.<\/p>\n<p>The price for the pair was rising and reached a new high (1.6017) in  the uptrend while the momentum line was falling, thus creating negative  divergence. This is a possible warning sign of a reversal in the trend.<\/p>\n<p>Traders may want to scale back any long positions they may have in  the GBP\/USD or tighten stops. A close below the support level of 1.5670  (S1), the low from September 30th and a break of the long term trend  line will signal a shift in the long term uptrend.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/10\/Divergence.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/10\/Divergence.JPG\" alt=\"\" width=\"564\" height=\"669\" \/><\/a><\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                                    may     not    be          suitable     for        all                        investors.            There       is   a                                          possibility              that                       you         could                   sustain a    loss             of    all        of            your                                   investment   and                              therefore    you                        should       not                invest                  money       that         you                       cannot               afford to                       lose.   You                     should         be             aware         of              all         the           risks                           associated          with                 Foreign                 Exchange                        trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the last two days the price of the GBP\/USD has pulled back from its test of the 1.60 level. Signs of negative divergence appear on the daily chart signaling a weakening trend and a possible reversal.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13974","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=13974"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/13974\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=13974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=13974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=13974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}