Exclusive GBP/USD Analysis 27.12.2016

GBP/USD Bullish Divergence in Progress

The GBP/USD is showing regular bullish divergence close to the important support at L4 weekly camarilla pivot. The lack of action during and before holidays has led to a consolidation period indicated by the symmetrical triangle. However, we can spot a possible sign of reversal should the pair stay above 1.2225. POC zone comes within 1.2245-55 (triangle lower trend line, L3, bullish order block) and we could see a spike leading to 1.2293 followed by 1.2310. 1h momentum or 4h close above 1.2310 should test 1.2340. Traders should beware of thin liquidity during holidays and if the price goes below 1.2225, a retest of 1.2200 is possible.

GBP/USD Chart
GBP/USD Chart

Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets.

Published by

Nenad Kerkez

Nenad Kerkez is an analyst and trader who has been in the market since 2008 and works closely with Admiral Markets as their Senior Lecturer and Market Analyst. Nenad covers over 25 currencies on an intraday basis and has a Masters in economics. He also developed CAMMACD TM, a proprietary trading and analysis strategy wit ever powerful pre fact setups that you can read every day. Nenad is also a valuable presenter on various FX EXPO shows, where he always presents new and interesting ways how to trade price action and protect your own investments. Further, he is the co-founder and head of Elite Currensea Trading, an educational website for currency traders.