The GBPUSD is creating a bearish price divergence. Why is caution warranted for traders now? Find out with today’s analysis.
11 September, OctaFX – The GBPUSD pair jumped to above 1.3000 after chief EU negotiator, Michel Barnier, said that a Brexit deal with the UK looked realistic in a timeframe of 6 to 8 weeks.
Just last week, it was reported that Germany and the UK had made key Brexit progress with such headlines being viewed as positive by traders who feared a hard Brexit. Today, the sterling will likely make more swings as the UK releases employment data for August.
GBPUSD Creates Bearish Price Divergence
The GBPUSD pair has moved towards the 1.3040 level, forming a bullish inverted head and shoulders pattern. Caution is still warranted as the recent move higher has created bearish MACD price divergence across the lower time frames.
- The GBPUSD pair is only bullish while trading above the 1.2985 level, key resistance is found at the 1.3040 and 1.3100 levels.
- If the GBPUSD pair moves below the 1.2985 level, price could correct back towards the 1.2955 and 1.2900 support levels.
This article about GBPUSD Creates Bearish Price Divergence was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.