Divergence on GBP/USD

Divergence on GBP/USD

The current technical pattern signals a possible correction of the GBP/USD currency pair after a significant drop. A classic reversal formation, the divergence of price and the MACD histogram (H4 timeframe), has been formed in the trading instrument. At the moment, GBP/USD quotes are growing. The 1.2865 level is the nearest resistance. We recommend paying attention to this situation.

If the price fixes above 1.2865, the GBP/USD currency pair is expected to grow. The nearest goal for profit-taking is 1.2960-1.3030. The movement is tending to 1.3160-1.3260. Confirmations and market entry points should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.

by Justforex, 2020.09.28

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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