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