GBP/USD – What Will be The Signal For Reversal Opportunity.
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MACD Divergence Indicates the Buyers Running Out of Power.
The GBP/USD has an amazing rally in the last 10 days after the announcement of a new Brexit deal possibility.
Generally, after such a strong rally I preferred to wait for a reversal opportunity.
The MACD Divergence which we can see in the H1 time frame chart indicates the buyers in this rally are running out of power.
Usually, a divergence between MACD and the price indicates an upcoming reversal opportunity.
The support below which is the last low, for now, is the confirmation zone.
It means if the price will breakout this support it will be a confirmation that the price has changed the momentum to bearish.
In that case, I’ll look for a price action setup to sell GBP/USD.
The confluence of breaking out the last low of an uptrend and MACD divergence creates a very reliable setup to sell GBP/USD.
The target for this position will be the demand below.
This demand is also a great fresh demand for buy position.
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