GBPUSD recently made a new higher high at 1.2667 but the RSI continues to make lower highs providing a bearish divergence warning. The up trend is weakening according to the RSI. Price is still making higher highs and higher lows inside a wedge pattern. Price is now under pressure and because of the bearish divergence I believe it is more probable to move lower towards the lower wedge pattern boundary around 1.25. At current levels we prefer to be neutral as we believe there is limited upside potential and increased risk of a pull back.
The material has been provided by InstaForex Company – www.instaforex.com
Black lines- wedge pattern
Green line- bearish RSI divergence
GBPUSD recently made a new higher high at 1.2667 but the RSI continues to make lower highs providing a bearish divergence warning. The up trend is weakening according to the RSI. Price is still making higher highs and higher lows inside a wedge pattern. Price is now under pressure and because of the bearish divergence I believe it is more probable to move lower towards the lower wedge pattern boundary around 1.25. At current levels we prefer to be neutral as we believe there is limited upside potential and increased risk of a pull back.
The material has been provided by InstaForex Company – www.instaforex.com
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