Bullish Divergence On GBPCAD
FХ Strategist & Financial Commentator
During yesterday’s session, by the way we finally had a bounce with the formation of the first bullish marubozu candle of the month of May, pushing the quotes back to 1.70 area.
Taking a look at the RSI indicator, we can now detect a perfect bullish divergence that should be pretty reliable, especially with a short-term outlook. The Average True Range on the other hand is still declining as we have seen over the past two months and it’s currently working around the 2019 levels, so this element should favour a bounce of the pound.
The bullish setup would be activated in case of a breakout of yesterday’s top over 1.7000 area, with a stop loss to place at 1.6800 below yesterday’s bottoms. The target price on the other hand can be predicted around 1.7200 nearby the previous bottom area set in the beginning of May.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.