Saturday, July 29, 2017

A GBP/USD Assessment For The Upcoming Week

The GBP/USD pair reached an important resistance level in the zone around 1.3130 – 1.3140 and for the moment the pair continues developing within the upward channel.

This is a key level, however, because the pair has reached the resistance trend line of the upward channel (in red) and the resistance trend line (in blue) of the trend from 6th July 2016 until now.

Also, on the D1 time frame there is RSI divergence compared to the bullish development of the pair.

The scenarios for next week are two:

The pair could drop to the support trend line of the upward channel, considering the RSI divergence and the strong resistance level GBP/USD is at.

If there is a break out above the trend lines and the price remains above them that would invalidate the bearish scenario.