GdayFx said:following this 5 year yield chart, i can see divergence developing at a seasonal change
Computater707 said:Thanks Gday. This helps me understand how to apply ICT inter market analysis and divergence.
Let me see if I can interpret the information:
1- The recent 5yr Pound index appears to be in a descending wedge, which is a reversal pattern so I would expect that dollar and pound interest rates may become convergent like they were from about mid October 2013 to late June of 2014.
2- I attached a weekly chart of GBPUSD that highlights that period. Note that the blue lines are 100pip round numbers. The fib and previous S/R areas indicate that a reversal or consolidation may begin soon.
3- Therefore the end of the current GBPUSD down trend may be near. Consolidation or reversal is to be expected in the next few weeks. I should reduce risk per trade and look for reversal patterns
Is this correct?