The passing week was one trading day shorter due to Thursday’s holiday, celebrated not only in Europe. I included two analyses, both turned out to be quite accurate, and despite the aforementioned holiday volatility turned out to be satisfactory and prices exceeded over 100p from the initial state – the level in which they were at when the analysis was made.
Analyzing the “cable” -I found the answer to the question asked in the title: “GBPUSD- H4 divergence, will there be a small correction?” I wrote this: “When we look at chart H4, we see that the price has rebounded from the support of the downward channel and a bullish divergence has formed on the MACD oscillator, which may indicate an upward correction. It is worth observing this pair and if at the end of the day the MACD minimum appears on the daily chart and the indicator starts to rise, you can risk opening a BUY order with a target near the resistance of the channel in which the price is currently located”.
What was the market response, just look at the comparative chart above… It turned out that the correction occurred and not only was the target given in the analysis achieved, but even exceeded by 50p.
What next? Since the MACD still shines green on D1 and there are signals that the Scottish National Party wants to work with the labours to avoid hard brexit, it is likely that the British pound may gain some value against other currencies in the coming sessions.
The second GBPJPY analysis appeared on Friday at 1:00 a.m. so it seemed that the market did not have much time to meet the scenario outlined in the analysis… and yet they managed to make it and the price broke out of both the formations mentioned in the analysis (Inside Bar and Outside Bar). Although the price at the end of the day returned slightly to IB, it is still above OB… so it is worth looking at this analysis, because for some time the market will probably move in line with its assumptions.
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