FX.co ★ Technical analysis on GBPUSD for May 22nd, 2023.

Green lines- bullish RSI divergence

Red line- resistance trend line

GBPUSD is trading around 1.2448 making lower lows and lower highs. Last week we warned traders for the potential reversal and pull back. Price has now formed bullish RSI divergence signals suggesting the increased chances of a bounce higher. Currently we find resistance at the red trend line at 1.2466 and a rejection there will open the way to a bigger decline towards the green trend line at 1.2366. The bullish RSI divergence is not a reversal signal but only a warning of a weakening down trend. Price can continue moving lower as long as price is below the recent high of 1.2482.