The GBPUSD pair traded with a bullish tone the entire week. In fact, the USD bearish move continued on all G10 pairs, especially during the Thanksgiving week when reversals are unlikely. As such, we should not be surprised that so late into the trading week, the GBPUSD still holds a bid tone.
However, it comes closer to breaking a rising wedge – a bearish pattern. Moreover, the rising trend formed during a bearish divergence with the RSI. No matter how you put it, one cannot ignore the bearish signs.
Brexit still seems far away as the European Commission announced that divergences remain. Moving forward, there are literally only three events that matter for cable – the NFP next week, the Fed in three weeks from now, and the Brexit outcome.
GBPUSD Technical Analysis
This is the hourly chart, and so it is susceptible to a move even today. Bears would like to sell a break below the lower edge of the pattern and place a stop loss at the 1.3400 level. A proper target needs a risk-reward ratio bigger than 1:2, so 1.3150 will do the trick. However, once there, bears might consider trailing stops and aiming for 1.30.
GBPUSD Price Forecast