FX.co ★ Wedge pattern in GBPUSD for May 3rd, 2023.

Black lines- wedge pattern

GBPUSD is trading around 1.25. Trend remains bullish as price continues making higher highs and higher lows. However price has formed an upward sloping wedge pattern and as we approach the top end of the pattern the chances for a reversal increase. Apart from the wedge pattern we also have a warning by the Daily RSI. The RSI is not making higher highs, instead it provides bearish divergence signals. Support by the lower wedge boundary is at 1.2435. As long as price is above this level, bulls will remain in control of the trend. A break below this support, a bearish signal will be provided and the start of a pull back confirmed. Traders better be patient this week with the FOMC tonight and the NFP numbers on Friday.