GBPUSD has arrived to an area where a rebound/consolidation could happen. We see various factors pointing in that direction :
- The price is at a very strong support area that was rejected yesterday quite strongly.
- We see a strong RSI divergence in the D
- Price while has been falling has been forming a descending wedge what it is usually a sign for reversal
- The pair has been flirting with an oversold RSI for quite some time now
At the same time we see signs that this recovery might not be so strong :
- MACD (not in picture) lacks momentum
- Price is capped by a strong descending trendline
- Price is capped by 50MA
- The daily candle closure although it was green it was not strong enough compared to the last bearish candles
With all this in mind I am more inclined to think that the pair might consolidate for a while before it reacts to either direction. I will consider trading it when either breaks the descending trendline or breaks the support. Keep in mind that we would need a bit of a recovery on the RSI for the pair keep falling if support is broken.
For now I will stay away from this pair as I dont see clear direction
- The price is at a very strong support area that was rejected yesterday quite strongly.
- We see a strong RSI divergence in the D
- Price while has been falling has been forming a descending wedge what it is usually a sign for reversal
- The pair has been flirting with an oversold RSI for quite some time now
At the same time we see signs that this recovery might not be so strong :
- MACD (not in picture) lacks momentum
- Price is capped by a strong descending trendline
- Price is capped by 50MA
- The daily candle closure although it was green it was not strong enough compared to the last bearish candles
With all this in mind I am more inclined to think that the pair might consolidate for a while before it reacts to either direction. I will consider trading it when either breaks the descending trendline or breaks the support. Keep in mind that we would need a bit of a recovery on the RSI for the pair keep falling if support is broken.
For now I will stay away from this pair as I dont see clear direction