Forex Trends - Trend is your BEST Friend Following GBP/USD Trends on multiple timeframes

Its the second week that I noticed this opening range breakout in action - but this time in gbp/usd pair - it was amazingly obvious.

As my habit goes - I trade 4hr chart - with an eye on weekly chart. So I combined the two to get a screenshot which is posted below.

Once the market fell below the opening price after trading above it for no more than two sessions in 4 hr chart.  It didn’t come back to test the opening price - well, it tried - but went down fast and kept going all week.

If you are not sure about the opening range breakout - pls read more about it at Opening Range Breakout

Also check out the fact that the weekly high - never tested the last week’s high - hence composing an argument that the downtrend is still in effect.

Finally, fibonacci on the weekly chart confirms the down trend - last week’s candle - as bullish as it looked - was nothing but a correction which test the 38.2% level - but never quite reached 50% (see below chart) - the trend is believed to be in the same direction - which in this case is bearish - until fibonacci penetrates 618%.

So we HAD three things going on for this pair

1. Looking at last week’s candle - the pair hit the Fibonacci 38.2% - indication the continuation of trend
2. Upon opening the market kept going bullish - but never dared to give us either a double-top or full penetration of the last week’s high - indicating that it strongly bearish
3. The opening range breakout - when the price fell below the opening price - it never came back to test the opening price - hence confirming the bearish sentiment.

I will keep an eye on all four currencies and report the same when I find - if you are following this blog or you would like to follow - pls feel free to write a few encouraging words.

Thank you.