GBPUSD Analysis – December-4-2023
The GBPUSD currency pair currently exhibits a bullish trend, trading within a bullish flag pattern and above the Ichimoku cloud. This positioning suggests an optimistic outlook for the pair. However, it’s important to note that the Average Directional Index (ADX) is approaching the 20 level, indicating a potential loss of momentum in this upward movement.
The prevailing sentiment remains positive despite the looming concern about the ADX nearing 20. We anticipate the GBPUSD pair to continue its upward trajectory, targeting the upper band of the bullish flag. This expectation hinges on the pair’s ability to sustain its position above the Ichimoku cloud, reinforcing the bullish trend.
Conversely, it’s crucial to consider the alternative scenario. If the pair falls below the Ichimoku cloud, it would signal a shift in market sentiment. Such a move would invalidate the current GBPUSD technical analysis, suggesting a possible change in the pair’s direction.