GBPUSD is showing Reverse Bullish Divergence in a downtrend

May 5, 2016

By Admiral Markets

The GBPUSD Construction PMI results and renewed concerns over Brexit have weighted down on the pair and it dropped touching the important level 1.1465 making a double bottom. Double bottom rejected the price and we can see so called Exaggerated or Reverse bullish divergence. If the price is making a double bottom-ish price while at the same time oscillator is making a higher low as we can see on the chart, we say that Reverse Divergence has been formed. If the price breaks an X cross (blue rectangle) – 1.4530 we can expect 1.4555 then 1.4580 and 1.4605.

However if we see the price breaking below 1.4465 we could see 1.4430 and 1.4385.

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Article by Admiral Markets

Source: GBPUSD is showing Reverse Bullish Divergence in a downtrend

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