Hi Traders! GBPUSD bullish convergence provides buy opportunity. A detailed analysis of this setup is as follows:
GBPUSD Daily Chart:
On the daily chart the price is currently moving higher, we also have a bullish hidden divergence that has formed, which we may consider as a confirmation for the bullish momentum. We may now expect this bullish momentum to continue further until we get any bearish evidences. Hence we can look for more confirmations on lower timeframes in order to join the bulls.
GBPUSD H4 Chart:
On the H4 chart the price has created a bullish divergence and then the price moved higher creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario we may look for corrections and then continuation to the upside. We also have a bullish hidden divergence that has formed which we may consider as an additional confirmation for the bullish momentum.
GBPUSD H1 Chart:
On the H1 chart we have double wave down and also we have a bullish divergence that has formed, so everything looks good here for buys. The price has broken above the downtrend line and if you want to be aggressive, then you can start looking for buys now. If you want to be conservative then wait for the price to break above the high at 1.4020 and then start looking for buys.
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