Trading below the 200 SMA - Two options to watch
This is an update to a previous analysis I posted here for $GBPJPY
The price broke down below the 178 support zone (now resistance) and below its daily 200 SMA line. This is a bearish signal that could hint that the price will eventually decline to complete the bullish Gartley (in yellow) and the AB=CD pattern (the wings).
But..
As long as the price remains above the 176 support zone, there's still a chance that it will rally to complete the bearish Gartley (in green). A good indication that the price might do so will be if the price will strongly breakout above the 200 SMA and the 178$ resistance zone.
You can monitor the daily range between 176-178 and maybe make a decision based on the side of the breakout.
The price broke down below the 178 support zone (now resistance) and below its daily 200 SMA line. This is a bearish signal that could hint that the price will eventually decline to complete the bullish Gartley (in yellow) and the AB=CD pattern (the wings).
But..
As long as the price remains above the 176 support zone, there's still a chance that it will rally to complete the bearish Gartley (in green). A good indication that the price might do so will be if the price will strongly breakout above the 200 SMA and the 178$ resistance zone.
You can monitor the daily range between 176-178 and maybe make a decision based on the side of the breakout.