FX.co ★ GBP/USD

GBP/USD. Good afternoon. The pound/dollar continued its move north yesterday; the bears were unable to seize the initiative. Today the bears are making a new attempt, but it’s still unclear whether they’ll manage to achieve anything. On the hourly chart, the indicators are still pointing to further movement to the upside; the pair has tested the middle Bollinger band from above and seems to be starting to bounce, but there is no confirmation of the rebound, and the narrowing of the channel itself doesn’t really support the development of a bullish move. At the same time, the lower-window indicators are showing bearish divergences, which hint at a possible breakout and decline. If things turn out favorably for the bears, there will be a chance for a move south towards roughly 1.3445–50 in the short term. On the 4-hour chart, the indicators are also looking north, but here too the lower-window indicators have drawn bearish divergences, hinting at a reversal. However, these are all indirect signals, and here it’s preferable to wait for direct ones.