GBPUSD: Potential trend reversal or at least major correction
Bullish sentiment has reached a dangerous extreme, momentum indicators are showing divergence when approaching the 5th point in this ascending wedge, which can potentially be a leading diagonal type Elliot Wave pattern.
Momentum divergence was present in the last push down, which is typical when approaching a bottom.
The Bank of England has kept a Hawkish tone recently, which changed the sentiment to bullish for the Pound.
Not so positive FOMC minutes helped seal the deal and made cable reach this sentiment extreme.
I expect a correction before further advance, which I don't discard.
I'd like to see a tradeable formation once this retracement is complete, to then look for long only trades.
Momentum divergence was present in the last push down, which is typical when approaching a bottom.
The Bank of England has kept a Hawkish tone recently, which changed the sentiment to bullish for the Pound.
Not so positive FOMC minutes helped seal the deal and made cable reach this sentiment extreme.
I expect a correction before further advance, which I don't discard.
I'd like to see a tradeable formation once this retracement is complete, to then look for long only trades.
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