GBPAUD- THE BEARISH REVERSAL IS HERE.

On the daily time frame chart, the price of GBPAUD has been spotted forming a bearish reversal pattern called the REGULAR BEARISH DIVERGENCE.
Regular divergence is one type of divergence that occurs when the price action makes higher highs or lower lows while the oscillating indicator does not. This indicates a weakness in the price action and a nearly warning that the trend could be coming to an end. In other words, regular divergence indicates that a probable trend reversal could occur through it does not indicated when this will occur.
So the REGULAR BEARISH DIVERGENCE occurs in an uptrend when the price action makes higher highs that are not confirmed by the oscillating indicator. This indicates a weakness in the uptrend as buying is less intense and selling or profit taking is increasing.
The gives the trader a signal to get ready to open a short position. Working with the reversal candlestick pattern shown during an uptrend is another way to confirm the bearish reversal. Below are the levels traders needs to keep any eye on:
Breakdown level: 1.88825
Support 1: 1.87805
Support 2: 1.86399
Support 3: 1.85000. Price needs to close below the breakdown level.
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Ideas published should not be referred to as an investment advice.