EUR-GBP Technical Analysis and MACD technical indicator

After quite sometimes studying the patterns of market movement on the EUR-GBP pair - there is quite convincing evidence the MACD is one of the most important technical indicators to predict the behavior of the market movement. It may fails at times but the consistency of the forecast is quite high. It is no wonder many conventional traders probably the big traders still relying on the basic MACD technical indicator to predict the forex market movement.

However to use the MACD effectively one must study and understand the multiple time frames perspective especially from the 4H up to the Monthly. The MACD is showing the big picture where the market support and resistance will fluctuate. 

On the other hands the MACD is not effective for scalping trades because of its delayed signal - it always stand behind the real time market fluctuations. Let's take a look on the historical market data that we've tracked since December last year.

06-Dec-2020 Technical analysis MACD time frame still going up and the daily MACD also going up the market fluctuates within the Top of the Bollinger bands of the monthly time frame.

07-Dec-2020 MACD on 4H and Daily still going up

12-December-2020 MACD on 4H and Daily still moving up

 

17-December-2020 4H MACD Down Daily Up

 

18-December-2020 4H MACD Up and Daily Up

 

28-December-2020 4H MACD Up and Daily Down