GBP/USD was capped twice at 1.6064 level, forming an ascending triangle pattern on the 4H chart. The formation has 75% quality along with 59% magnitude in a 62-bar period.
The price rebounded from its one month low at 1.5725, and increased to the pair's four-month high around 1.6064, where it was capped. The price is fluctuating above SMA200 indicator, which leads to the pair's strength. If the price increases, bulls may focus their attention to the 1.6064 level. If it spikes the level around 1.6064, the first target for bulls could be around 1.6144 where the five-month high lies.
The price is now testing the key level at 1.6064. If the pair decreases, short traders could focus their attention to the support level at 1.5986. If the price breaches this level, the first target for bears might be around 1.5871, where the pattern local low stands.