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FX.co ★ GBPUSD justifies at least a short-term bounce.

GBPUSD justifies at least a short-term bounce.

GBPUSD remains in a bearish trend making lower lows and lower highs. However there are some signs that the downtrend is weakening and usually when we see such signs, a bounce follows. GBPUSD justifies a bounce from current levels if not a bigger reversal.

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GBPUSD justifies at least a short-term bounce.

Red lines- bullish divergence

The RSI is not making lower lows as price does. This is a bullish divergence in the 4h our chart. This is not a reversal signal. This is only a warning to bears. A bounce towards 1.2380 is justifies and could be seen over the next couple of sessions. Traders need to be cautious. GBPUSD is declining since January. A strong bounce higher to correct the entire downward move is very probable.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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