GBP/USD consolidate in the triangle. Waiting for a big burst!

Today our focus Shifts to the Pound. As you can see GBP/USD is moving in a bearish price channel since the end of October. Now the price also consolidate in the triangle, formed on 4-hour chart. At the same time the pair is at critical point struggling around 1.2845. Because the area of 1.2835 - 1.2848 is a dense cluster of levels including the Bollinger Bands 4-hour middle line, the Simple Moving Average 100 on M15 timeframe, the M15 200 SMA, the 1-hour 50 SMA, the 4-hour 10 EMA and the Fibonacci 38.2% on the daily chart.

If the price broke below the triangle, we can see the bears to test their next target at 1.2837 before potential further rebound to be seen. On the upside, if the bulls make a clear break above the triangle, the price can test the upper trend line of the bearish channel around 1.2920 before to extend the rally up to psychological 1.3000 level.

Fundamentally, take in mind that today is another busy day ahead on the data front. Key stats include October retail sales figures that will influence the Pound. Disappointing numbers would fuel further speculation of a near-term BoE rate cut.

The Pound has stood up against quite dire data this week, supported by the general election opinion polls. It’s unlikely that the Pound would be able to stomach dire numbers today, however. What is your trade here?

Trade closed: target reached:

The first Take profit was hit today at 1.2920. Now, the next target is 1.29988