Friday, January 19, 2018
A RSI Divergence On The H4 GBP/USD Time Frame Is A Signal For A Drop
The possible drop that this divergence is a signal for could reach 1.3550.
On the larger time frames, however, there is no signal that the pair’s rally is over, so for now we can only expect a corrective depreciation, after which GBP/USD could keep moving north to 1.4050 – 1.4100.
In my opinion a further deepening of the depreciation is not very likely, at least for the moment.
We should also observe the trend lines of the RSI divergence. In case there is a breakout to the upside that would mean a renewal of the rally without reaching the limit of the divergence.