Bullish Convergence in GBP/USD
Pair’s convincing recommencement and the fact that 4 hour MACD pushed over the signal line both indicate a short term bottoming at 1.3450. Trading became neutral. The drop from 1.4376 hasn’t extended. While the minor resistance of 1.3607 is present, the forecast will stay bearish and larger fall will occur. Following pivot points include: (S1) 1.3451; (P) 1.3495; (R1) 1.3535.
Sustained breach of 1.3448 will align 1.2874 fibonacci level. According to bullish convergence in 4 hour MACD, breach of 1.3607 will suggest near term bottoming. In that case, trading will turn up on the upside to 55 day EMA.
According to bearish divergence condition in daily MACD, the entire medium term recoil from 1.1936 has ended at 1.4376. The cable was rejected from 55 month EMA of 1.4223. Breach of 38.2% retracement of 1.1936 to 1.4376 at 1.3448 will head towards 61.8% retracement at 1.2874 and lower. While 55 day EMA of 1.3861 holds, the forecast remains bearish.