GBPUSD: Potential trend reversal or at least major correction
Updated
Bullish sentiment has reached a dangerous extreme, momentum indicators are showing divergence when approaching the 5th point in this ascending wedge, which can potentially be a leading diagonal type Elliot Wave pattern.
Momentum divergence was present in the last push down, which is typical when approaching a bottom.
The Bank of England has kept a Hawkish tone recently, which changed the sentiment to bullish for the Pound.
Not so positive FOMC minutes helped seal the deal and made cable reach this sentiment extreme.
I expect a correction before further advance, which I don't discard.
I'd like to see a tradeable formation once this retracement is complete, to then look for long only trades.
Momentum divergence was present in the last push down, which is typical when approaching a bottom.
The Bank of England has kept a Hawkish tone recently, which changed the sentiment to bullish for the Pound.
Not so positive FOMC minutes helped seal the deal and made cable reach this sentiment extreme.
I expect a correction before further advance, which I don't discard.
I'd like to see a tradeable formation once this retracement is complete, to then look for long only trades.
Trade closed: target reached
🔒Want to dive deeper? Check out my paid services below🔒
ivanlabrie.substack.com/
ivanlabrie.substack.com/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.