FX.co ★ Technical analysis on GBPUSD for May 30th, 2023.

Red line- resistance

green lines- bullish RSI divergence

GBPUSD is providing a bullish reversal signal. Price has broken out of the downward sloping wedge pattern. GBPUSD is breaking above the red downward sloping trend line. The bullish RSI divergence combined with the break out above the red trend line, suggest that a new upward wave is starting. GBPUSD is now trading around 1.2435 having already reached the 38% Fibonacci retracement of the entire decline from 1.2678. There is important Fibonacci resistance at 1.2450. A rejection and pull back to form a higher low is very possible. Support is found at recent low of 1.2326. As long as price is above this level, we expect GBPUSD to continue higher.