After a very strong run in recent weeks the GBP/USD pair is now very close to entering a new bearish phase. The reason I say this is because the Supertrend indicator currently stands at 1.6425 so as soon as the price closes below this level, the Supertrend is going to turn red, ie bearish, for the first time since March 24th.
Therefore as a result of this, when I use my main 4 hour trading strategy (see right for details) I shall automatically be seeking out opportunities to open short positions on the 4 hour chart for this particular pair.
There are already a few signs emerging that this pair is turning bearish. For instance the CCI (20) has just crossed down through 0, the RSI has recently crossed down through the 50 level, and the Smoothed Repulse indicator (another one of my favourites) is also on the verge of turning bearish as well.
So as I say if the Supertrend turns red as well, ie closes below 1.6425, then the GBP/USD could be heading a lot lower in the coming weeks.