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11.03.2022 06:47 PM
GBPUSD wedge pattern in play.

GBPUSD remains in a bearish trend making lower lows and lower highs. Price made a new lower low today but in the 4 hour chart the RSI did not follow. Price is forming bullish divergence signs. This is a warning that the downtrend might soon end.

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Red lines - wedge pattern

green line - bullish divergence

Blue line- support

Black line - resistance

Price is also forming a downward sloping wedge pattern as shown in the 4 hour chart above with red lines. Resistance by the wedge is at 1.3140. A break above this level will produce a bullish signal. Combined with the bullish RSI divergence, we should then expect GBPUSD to continue higher towards 1.34. The lower wedge pattern boundary is at 1.30.

Summary
Urgency
Analytic
Alexandros Yfantis
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