Title
GBPUSD H4 | Bearish Divergence
Type
Bearish Reversal
Preference:
Price is currently at our pivot point at 1.26293 which is swing high resistance level. A reverse from here price could drop to our 1st support at 1.25442which is an overlap support that lines up with 38.2% Fibonacci retracement.
Alternative scenario:
However, if price breaks above the pivot, it could rally to 1st resistance at 1.26513 that lines up the 141.4% Fibonacci extension.
Additionally. The RSI is displaying bearish divergence versus price., which suggests that there will likely be a rapid decline in price.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.