GBP/USD - Watch out for bearish price-RSI divergence

29 Nis 2016

Resistance - 1.4670, 1.47, 1.4805

Support - 1.4636-1.4617, 1.4578, 1.4533

• Despite Cable's rise in Asia above 1.4636 (38.2% of 1.5930-1.3835) in Asia, we remain cautious as the bird is yet to take out major hurdle at 1.4670 (Larger falling trend line resistance on daily chart).
  

• Traders need to keep an eye on 4-hour chart, which might confirm a bearish price RSI divergence. The current 4-hour candle closing in red could open doors for a fall back to 1.4450 (rising trend line on hourly chart).
  

• As of now, the pair is trading in a "No Man's Land" of 1.4617-1.4670.
  

• An hourly close above 1.4670 could signal continuation of rally towards 1.47 levels.