GBPUSD: Rejected on the Descending Triangle. Break out plan.

GBPUSD has been on a strong bullish trend since mid August and the rebound on the 1.19980 1W Support. The sequence has been however rejected on the Lower High trend line (bold black line) of the long term (since 2016) Descending Triangle and is since consolidating around the 1W MA200 (orange line). This consolidation has turned 1D neutral (RSI = 45.684, MACD = 0.000, ADX = 22.404, Highs/Lows = 0.000) which is natural.

This sequence is similar to the strong uptrend that followed after the last rebound at 1.1990 which was in January 2017. GBPUSD was again on course towards the Lower High trend line of the Descending Triangle and was again rejected, keeping the long term bearish pattern alive. Even though a pull back towards the Support has slightly more probabilities now (due to the Descending Triangle being the dominant trend), we have to consider both possibilities as the bullish sequences are identical:

* If the 1.3500 1D Resistance breaks, then the price will most likely extend the uptrend towards the 1.44000 1W Resistance.
* If the 1W MA50 breaks, then the price will most likely make a total bearish reversal towards the 1.19980 1W Support and the long term bearish trend of the Descending Triangle will be maintained.





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