FX.co ★ Technical analysis on GBPUSD for May 23rd, 2023.

Red line - resistance

Green line- bullish RSI divergence

GBPUSD remains in a bearish short-term trend. Price continues making lower lows and lower highs. Price yesterday tested the resistance trend line and got rejected. In our analysis yesterday we warned that a rejection at the 1.2466 resistance would lead to a downward move towards the green line. Price is very close to reaching our downside target of 1.2366. Despite the new lower low, the RSI is making another bullish divergence with a higher low. This is a warning sign for bears, they should not get overconfident. Price is forming a downward sloping wedge pattern and there is still room to maneuver inside the pattern. A bounce towards 1.2425 is justified.