I have checked the GBPUSD pair and I found there is bullish divergence on daily chart. Knowing that the bullish divergence is on the daily chart, it gives a pretty strong signal.

Hello everyone! How are you? Today I’m going to give you my weekly analysis for the GBPUSD and EURJPY pairs. Let’s check it out:

 

1. GBP/USD | Bullish Divergence on Daily Chart

I have checked the GBP/USD pair and I found there is bullish divergence on daily chart. Knowing that the bullish divergence is on the daily chart, it gives a pretty strong signal. We do not often see divergence on daily chart so if you see one, it is worth your attention. Let’s see:

GBPUSD

The price is now at 1.518 level (when I am writing this) and it’s on a strong support level (check the picture). We should look for a bounce and the bullish divergence near this support level gives us the signal to go long.
We have to keep our eyes on the price, if the candlestick closes as a bull candle (we have to check it tomorrow morning) and the RSI is sloping upward, we can jump into the trade OR if you use Stochastic, wait for the Stochastic crossover before you enter the trade.

Put the stop loss at the latest low and your profit target should be around latest resistance level (1.56 area).

 

2. EUR/JPY | Continuation Pattern

Next is EUR/JPY pair. I have checked this pair and I found hidden bearish divergence on 4H chart.

EURJPY 

We are looking to sell this pair. The RSI is sloping downward which is a confirmation to go short, if you are using the Stochastic, wait for a crossover before you enter the trade. Put your stop loss above the latest high (yellow line) around 135.5 level and your profit target should be around support area, 133.5 level (green line).

Do not hurry to enter the trade, make sure you have confirmation before enter the trade. Watch the price movement and wait for the right entry.
Hope this helps!

RICO FY