GBP/USD – Bullish divergence worked, expecting a pullback now
Bullish price RSI divergence seen on the hourly and 4-hour chart yesterday managed to push the GBP/USD pair well above 1.30.
At the time of writing, the pair was trading around 1.3076.
What’s next?
Divergence on the intraday charts usually signal pull backs, while those on the daily/weekly chart signal reversal. We have not seen any divergence on the daily chart… hence; it is too early to say that a bottom has been made.
Also note, on the hourly chart the 100-MA is sloping downwards and the RSI has hit the overbought territory.
Thus, we could see a pullback hourly 100-MA 1.3037 before another attempt at daily highs is made.
At the time of writing, the pair was trading around 1.3076.
What’s next?
Divergence on the intraday charts usually signal pull backs, while those on the daily/weekly chart signal reversal. We have not seen any divergence on the daily chart… hence; it is too early to say that a bottom has been made.
Also note, on the hourly chart the 100-MA is sloping downwards and the RSI has hit the overbought territory.
Thus, we could see a pullback hourly 100-MA 1.3037 before another attempt at daily highs is made.
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