FX.co ★ GBP/USD

The British pound, along with the European currency, is showing a confident rise against the US dollar as part of the internal structure of wave "c" of a simple zigzag "abc". However, based on the internal wave labeling of this wave, this rise is nearing the final stage of its development, as a local bearish divergence has emerged between the GBP/USD pair quotes and the MACD indicator histogram. This is just a theoretical assumption of a possible reversal of the pair's quotes, which needs confirmation in the form of a drop below the MA200 moving average. Otherwise, further growth of the pair will easily break this local divergence. The formation of an upper fractal on the H4 timeframe could signal a possible halt to the current rise. As long as this has not occurred, technically the pair's rise remains in force, despite its overbought condition. In general, for now, I predict an increase in the pair, but with limited potential. On the daily timeframe, the existing technical picture of the pair also supports its bullish sentiment.