GBPUSD is currently showing a pattern of higher highs and higher lows, which is typically a bullish signal indicating an uptrend. However, there is also a rising wedge pattern forming, which is a bearish reversal signal. This wedge pattern is characterized by a narrowing range between two trend lines, with prices typically breaking out to the downside. As such, while GBPUSD is currently in an uptrend, the rising wedge pattern suggests that a bearish reversal may be on the horizon, also GBPUSD is showing a bearish divergence on RSI, indicating a potential reversal in trend.
Traders should be cautious and monitor the price action closely to determine whether the pattern resolves to the upside or the downside.
I will take entry If GBPUSD breaks a specific trendline and makes a lower low, which would potentially signal a bearish trend and provide a trigger for their entry into a short position.
Traders should be cautious and monitor the price action closely to determine whether the pattern resolves to the upside or the downside.
I will take entry If GBPUSD breaks a specific trendline and makes a lower low, which would potentially signal a bearish trend and provide a trigger for their entry into a short position.