The GBP/USD pair is trading below its downward trend line on a 4 hour time frame. The pair is trading away from its 50 day shown in green and 100 day moving average shown in red and this confirms that the trend is towards the downside. We have also broken the upward wedge pattern towards the downwside. The full projection of this pattern could push the pair all the way down towards the major support level mentioned below. The GBP/USD is also trading within the Bollinger band and this confirms that the volatility is low.
The RSI is trading near the over sold region and this calls for a caution as most traders take this signal as a buying opportunity.Nonetheless, we do have a divergence between the RSI and the price and this shows that the bias is towards the up side because as the price is making the lower low, the RSI is not confirming this.
Important Zones
1.5934-1.5885 Resistance
1.5210-1.5164 Support Minor
1.4967-1.4921 Major
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