After breaking Head & Shoulders formations few days ago, GBPUSD seems to form a Bullish Divergent bar setup on 4 hours chart at the end of today USD trading session.
Four attempts to break 1.9750 level ware made in vain and they result in forming two Bullish DBars. The setup seems to have a good angle while AO shows red bars. Last two bars are green, so we'll wait for the 3rd green bar to add to the Dbar entry order.
Even if price does not break upper channel (about 2.00 level), there is a good potential for profit.
On Daily chart consolidation channel is clearly seen:
Acceleration down is slowing; momentum is around Zero line. Alligator is closing.
Down move has touched 38.2% Fibo level. It seems like a Wave 4. If Dbar continues up this could be labeld b-c wave.
Nevertheless now it seems reasonable perhaps, we have always take in mind that market will decide where to go and we must be prepared for any direction (including sideway ;)
