GBPUSD – after reaching maximum in mid-April at 1.4375, the pair moved in a downward trend and after losing 1325 pips reached the minimum of this year at 1.3050. Since the beginning of this month, weak corrective movements are under way. The last growth candle of June with range 150p formed the Inside Bar formation (chart on the left), because the quotations in the following days did not go beyond its range.

Bearing in mind that we have a bullish divergence between the MACD oscillator and the price – we can expect that the breakout from the IB will take place thru the top and the upward correction will become a fact. The nearest resistance is the upper edge of the local bearish channel in which the pair has recently moved. If the breakout from IB would take place at the bottom, the drops may reach support located 250p below.

GBPUSD Daily – Bullish divergence heralds a correction

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