Price is compressing in this little area. Despite gloomy outlook continuing post-Brexit, GBP bears have not really been able to take control on the back of good UK data last week. But as we run out of space, we can expect price to give in to downward pressure and flip GBPUSD bearish.
Comment:
On second thought, looking at how price touches it as it breaks out of the triangle, don't ignore the red trend line. If this 3hr candle is contained outside the triangle, I will be looking to go short on this one.
Order cancelled:
Could not find a signal to enter short. Price went back into the triangle and now looks like it will go long. I will have another look at it.
Comment:
I'm not sure what to make of GBPUSD right now. Despite great UK GDP data, price flew upwards on a seeming recovery only to return to where it started. It seems intent on staying in the triangle for as long as possible. We could run out of triangle too.
Anyway, price continues to compress in the WPP area (light blue line), struggling to close above it and if a breakout occurs, we can expect a large movement downwards (or upwards, less likely but we'll see).