Sell GBPUSD at UK Recession

FX:GBPUSD   British Pound / U.S. Dollar
The GBP/USD pair on the H4 timeframe exhibits a potential selling opportunity due to a recent downward breakout from a symmetrical triangle pattern. This pattern suggests a period of consolidation followed by a potential trend continuation in the breakout direction.

Key Points:

Triangle Breakout: The price has been confined within a symmetrical triangle, characterized by converging support and resistance lines. This often indicates indecision before a decisive move. However, the recent break below the lower support line at 1.2600 signifies a shift in momentum towards the downside.

Sell Entry: Consider entering a short position around the current price of 1.2630, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.

Target Levels: Initial bearish targets lie at the support level of 1.2350, marking a previous support zone within the triangle. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.

Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the triangle, ideally around 1.2750. This helps limit potential losses if the price reverses and breaks back upwards.

Thank you
Trade active:
Geopolitical Tensions: Any escalation in ongoing geopolitical tensions could trigger risk aversion and drive investors toward the safe-haven US Dollar, putting further pressure on GBP/USD.

Upcoming Flash Eurozone PMI: Scheduled for release later, this data could impact the Euro, which has a strong correlation with the Pound. A weaker Euro reading could drag GBP/USD down further.
Price Consolidation around Resistance Zone Now

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