GBPUSD has been in a bullish trend and a higher high and higher low structure. Market started to stall at the resistance level priced in at 1.2520. At this level, we will be looking to go short which will be a counter trend in a bullish market. It should be noted that this trade could be risky as its against the trend. 

The ascending trendline has been slightly broken out for sells, inducing the weak breakh out sell for trendline. On the other hand, we have a resistance trendline which is acting as a bearish divergence as opposed to the RSI. 

EMA 50 is bullish. Therefore, our profit target would be the retest of the EMA 50. 

RSI is at 63, which is below the over bought region. This pivot point has the solid divergence towards the bearish side as the first pivot was at the over bought region. 

Bearish divergence on GBPUSD

Apr 13 2023

Stop Loss -0.60%

Holding time 15d4hr

1.25044

Entry price

1.25800

Stop loss price