aidan1b

Bearish divergence, possible break out of rising wedge on GBPUSD

Short
FX:GBPUSD   British Pound / U.S. Dollar
On the 4h chart of Cable, a bearish divergence (in RSI , MACD , and Stochastic ) is observed with no higher-highs being formed, signaling weakness in the current bull trend. A break out of the rising wedge and a subsequent break below the local support of 1.32990 could provide a short signal where it is expected to fall to at least the 4H support of 1.31760. However, I believe it could drop further to longer-term support at around 1.30700 and possibly even further to 1.28800. If price does not break the first support level at 1.32990, the trade is not taken.

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