GBP/USD: Large divergence of the daily RSI – Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD’s recent slide into 35 month lows was accompanied by a large divergence of the daily RSI.

Key Quotes

“It also has not closed below 1.2000 and we have seen as sizeable bounce higher. Rallies will need to overcome the 55 day ma at 1.2343 – this protects the June high at 1.2784. Below 1.1958 (3rd September low) lies the 1.1491 3rd October low (according to CQG).”

“Only a rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”