GBP/USD /Buy opportunity/Hidden Divergence/Trade idea
If you take a quick look at the structure that the pound was following which was a sellers market, you will notice the 3 red arrows showing each LH (Lower-High) creating 3 touches that formed the downtrend line. Also, you will notice a blue dotted line from price action showing a support zone back in September of this year. In this case it is safe to assume that price action will again respect that zone. Once this took place, I saw on the Stochastic indicator creating "Hidden Divergence" with price action following it perfectly. My analysis shows that the pound will break that trend line and it will continue in its upward direction with the strength of the dollar decreasing in value due to economic events regarding future interest rates and monetary policy. If the pound shows more rejections around 1.35400 than we can capitalize on the buy opportunity that is approaching.
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