© Dukascopy Bank SA
Formally GBP/USD is trading inside the triangle pattern, because lower trend-line is trending upwards, while the upper edge has a slight downward slope. In fact the current pattern increasingly looks like a rectangle with boundaries between 1.55 and 1.5250. We expect this horizontal trading to continue in the foreseeable future, owing to mixed market signals. While 53% of SWFX traders are holding short positions and weekly studies are bearish, 4H and daily indicators expect a rebound. In the short term GBP/USD will face a support at 1.5349/37 (monthly PP, 200-period SMA). A success here will imply extra losses down to 1.5253. Otherwise, a failure may encourage purchases of the Pound back to 1.55.
© Dukascopy Bank SA