Let's analyze the currency pair GBP/USD using technical analysis. The main focus will be on the levels of support and resistance of the weekly pivot, the basement indicator, and the indicator forming the 1-2-3 pattern. Let's concentrate on the chart.
The Vertex indicator today, in the second half of the Asian trading session, signaled that the currency pair is overbought, and after that, the quotes continued their upward movement. This indicator signal is considered a confirming signal and a signal with divergence, which strengthens it. The moving averages with periods of 200 and 50 show a strong upward trend, contradicting the signals of other indicators. Sellers managed to form the 1-2-3 pattern, indicating their desire to reverse the quotes downwards. However, sellers have not yet confirmed the 1-2-3 pattern, as there has not been a breakthrough of the 1.35359 level, indicating a lack of strength. In this situation, I will wait for confirmation of the 1-2-3 pattern and a breakthrough of the 1.35359 level. Then I will wait for the price to decrease to the level of support of the weekly pivot at 1.35069, and after the price consolidates below the level, it will be possible to open a sell position, but only with a portion of the lot. The other part will need to be kept in case the price retraces to the resistance level of the weekly pivot at 1.35673, where the trade can be averaged.
