GBPUSD- What to do if your idea is different from the herd?

GBPUSD (daily) is currently showing an interesting pattern – A double top formation (green line)

In order for this bearish pattern to be completed, the price (orange line) needs to fall below the neck line (yellow line).

The price has also recently crossed over the 20 (blue) and 50 (red) MAs and with the double top in close proximity of formation, it is very tempting to go short.

Interestingly, if we look at the ‘Sentiment Index’ available on the Kimura Trading platform, we can see that 73% of clients with open positions think that GBPUSD will rise whilst just 27% think this will fall.

As we have seen in the last couple of days on various other articles published on our site, in most of the times, doing contrary of what the herd is doing as long it is backed up with analysis resulted in better results.

What do you think? Should we go long or short?

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1 - Comment

Christian Buhagiar - 26 ottobre 11:17 Reply

Update

As per the attahached, we can see that most of the traders were wrong and in actual fact the currency pair not only crossed over the neckline, but continued heading downards... In this case we can notice that by using Sentiment Trading in our favour, combined with technical analysis, most of the times we should end up in the right position of the market!