Blue lines- bullish RSI divergence
GBPUSD is trading around 1.1440 visiting levels not seen since March of 2020. GBPUSD is about to make new multi year lows with monthly RSI reaching oversold levels and providing another monthly bullish divergence.Will the new leadership in British government provide enough strength to bulls to reverse trend from current levels. Technically trend remains bearish with no sign of reversal. On a weekly basis we see similar bullish divergence by the RSI, but as we have said before, the RSI is only a warning signal and not a reversal signal. We need more signs to call a bottom in trend. Bears dominate the trend and continue pushing prices lower. A bounce towards 1.15-1.17 is justified. We can talk about a possible short-term trend reversal if GBPUSD recaptures 1.1750-1.18.
