Wednesday, June 24, 2020

Bullish Divergence On GBPAUD

Marco Tosoni

FХ Strategist & Financial Commentator

Over the past three months, this pair has started a powerful bearish rally that has led the prices towards 1.79 area without any significant technical correction, after setting the 2020 record around 2.08 during the month of March and a distribution phase.

The past two weeks have been characterized by a further fall, while on yesterday’s session we had a doji candle with a new bounce attempt and the first bullish closure of the week.

The average true range has started to rise again during this month and I’m expecting an increased activity on this pair and on those related to the pound in general.
Looking at the RSI indicator, we can detect a perfect bullish divergence, that should favour a bounce of the pound, also considering the lack of rising swings during the last three months.

The setup would be activated in case of a breakout of yesterday’s top around 1.8150 area. The stop loss can be placed at 1.7850 below the weekly bottoms, while the target price can be expected at 1.8450 around the tops scored two weeks ago.

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.

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