Divergence on GBP/USD

Divergence on GBP/USD

The current technical pattern indicates a possible correction of the GBP/USD after a significant fall in the past two months. Since mid-April, the pound has weakened against the US dollar by more than 1000 points. A classic reversal formation of the price and MACD histogram divergence has been observed on the trading instrument for a long time (H4 timeframe). At the moment, the GBP/USD quotes have approached the "mirror" resistance level of 1.34750. We recommend you to pay attention to this situation.

If the price fixes above 1.34750, it is necessary to consider buying GBP/USD. The immediate goal of profit taking is the round level of 1.36000. In the medium term, the GBP/USD currency pair may reach the level of 1.37250-1.38000. Confirmations and entry points to the market should be looked for on lower timeframes. When tracking the position, we recommend using a trailing stop.

by JustForex, 2018.06.11

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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