VOT Research Desk
Before Thursday’s London opening, the GBPUSD reverses its first daily loss in three days at approximately 1.1880.
While doing so, the Cable pair prints a bearish divergence on the Relative Strength Index (RSI) at 14 and bounces off the intraday low while remaining on the seller’s radar.
The three-day formation of lower highs and the higher-low on prices, which don’t coincide with the RSI circumstances, give the GBPUSD bears reason for optimism as they wait for the UK’s Autumn Statement.
A trend line with a rising slope from the previous Thursday, however, limits the quote’s immediate downside to about 1.1860.
After that, the 200-HMA region around 1.1645 may serve as a final negative filter before driving GBPUSD sellers into the 100-HMA level of 1.1817.
A two-week-old ascending trend line, near 1.1630, should be noted. Instead, in order to defy the lower-high formation and point buyers in the direction of the monthly top of 1.2030, recovery moves must surpass the most recent swing high at about 1.1925.
The August month high near 1.2280 can catch the market’s eye if GBPUSD stays higher than 1.2030.
