Vladimir Ribakov analyzes GBP/USD and finds a bearish divergence: RSI is forming lower highs while price makes higher highs after three upward waves. He expects a corrective move, likely a range or ABCD pattern, before the longer-term uptrend resumes.
Chapters
Pound dollar, same story like the euro. Our anticipation was that we will see the pair pushing towards this zone where from we should be able to see the sellers taking the control. So right now that's pretty much following one-to-one everything happens with the euro dollar, and I do not think the bullish run is over. I do think though that after these 3 waves, especially with Slowing down RSI. Look what happens here. While the market makes the higher highs, RSI makes lower highs. Guess what it is? Bearish divergence. Usually it is a sign that we are in front of a corrective move or at least some sort of a pullback, which usually brings either ABCD, some sort of a range, and in rare cases one straight move down just before the continuation to the upside. So similar to the euro, I believe the pound dollar is. Heading back to this range. There is also massive volume profile balance on here, as you can see. If we go back on the whole trend, this area would be even cleaner, as you can see here. So from my point of view, short-term bearish, longer term afterwards looking for the buys.
