© Dukascopy Bank SA
GBP/USD has formed a Rising Wedge pattern on 1H chart. The pattern has 43% quality and 53% magnitude in the 138-bar period.
The pattern started when the pair bounced from 1.6079. Currently the pair is trading at 1.6212. Gap between pattern's support and resistance narrows by 37 pips in 100 bar period. Technical indicators on aggregate point at appreciation of the pair on 4H and 1D horizons suggesting that the pair will continue to follow pattern's, upward sloping, trend. Long traders could focus on Fibonacci (38.2% of move since 13th of September) at 1.6222, 20 bar SMA at 1.6241, Fibonacci (23.6%)/daily pivot (PP) at 1.6255/61, Bollinger's band at 1.6288 and pattern's high/daily pivot (R1) at 1.6309/10.
Technical indicators on aggregate send a very strong sell signal on 1H time horizon suggesting that the pair will attempt to breach pattern's support. The SWFX market sentiment is bearish as 73% of traders hold short positions expecting depreciation of the pair. Short traders could focus on daily pivot (S1) at 1.6212, pattern's support/200 bar SMA/Fibonacci (50%)/Bollinger's band at 1.6200/190 and Fibonacci (61.8%)/daily pivot (S2) at 1.6167/64.
© Dukascopy Bank SA