Dukascopy

GBP/USD forms ascending triangle pattern

FX:GBPUSD   BRITISH POUND / U.S. DOLLAR
GBP/USD forms ascending triangle pattern

During the previous trading session the currency rate expectedly returned back to the 1.3110 mark, which represents location of the 23.6% Fibonacci retracement level. As this barrier was additionally backed up by the 55-hour SMAs, it made a rebound. However, the fact that the cable failed to climb above the 50% retracement level at 1.3180 two times in a row as well existence of a slope that lies along rising 55-hour SMA indicates on existence of a minor ascending triangle pattern.

If this assumption is true, then the pair is likely to make a breakout to the top already by the end of the day due to existence of combined support barrier formed by above 55- and 100-hour SMAs, the 38.2% retracement level and the weekly PP at 1.3150.
Comment: GBP/USD sinks amid Priti Patel scandal

During the previous trading session the cable was in perfect situation to make a rebound from combined support level formed by the 55-hour SMA, the weekly PP as well as the 38.2% Fibonacci retracement level and make a breakout from the ascending triangle pattern. However, another political scandal in the British government led to rapid sell-off of the Pound.

As a result, the exchange rate got in a tricky situation. On the one hand, further road to the south is blocked by the 100-day SMA and the lower line of a large symmetrical triangle. This disposition supports intention of bulls to return the pair back to the pre-fall 1.3175 level. However, in order to achieve this goal, the rate needs to pass through combined resistance set up by the above retracement level, the weekly PP and the 55-hour SMA.

snapshot
See more at the Dukascopy Analytics page
https://www.dukascopy.com/swiss/english/marketwatch/market_news/Technical-Analysis/

Check out our trading platform:
https://www.dukascopy.com/land/swiss/
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
ประเทศไทย
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out