GBP/USD – Bullish price-RSI divergence

28 giu 2016

Resistance - 1.3352, 1.3427, 1.35-1.3567

Support – 1.3296, 1.3226, 1.3119

Pattern – Bullish break from falling channel on 15-min chart & bullish price RSI divergence on hourly

• 
  Pair’s bullish break from falling channel on 15-min chart coupled with a bullish price RSI divergence indicates a corrective rally may have resumed and prices could test 1.3427 (hourly 50-MA). If taken out, the pair could extend gains to 1.35-1.3567 (23.6% of Brexit fall).
  

• Only a day end closing above 1.3567 would signal a short-term bottom is in place at 1.3119.
  

• On the other hand, a failure to take out/sustain above 1.3352 (hourly chart resistance) followed by a break below 1.3296 would shift risk in favor of a re-test of yesterday’s low of 1.3119.