The GBP/USD jumped back up from its support zone which We Mentioned last week. The support zone of 1.50822-1.5113 was a a fresh support zone on a 4 hour time frame and presented a strong probability of rebound. Going in the support zone, we mentioned that we have a strong divergence between the price and the RSI indicator.
The trade is in 123 pips in profit when the risk was only 23 pips which is very high risk to reward ratio. The price has crossed its 50day moving average and could face a small resistance near the its 100 day moving average which is shown in red.
The RSI is still trading in line with the price action which means that the upward move could still continue.
1.50822-1.51133 Support Zone
1.55300-1.54773 Resistance Zone
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam