© Dukascopy Bank SA
A rally that was initiated on Feb 5 was stopped 100 hours ago, when GBP/USD topped out at 1.6823. And even though since then the currency pair was well-underpinned by the horizontal support level at 1.6637, its every consecutive high was lower than the preceding peak, resulting eventually in appearance of the descending triangle.
However, being that this pattern implies continuation of the recovery and the Sterling has just encountered the long-term moving average, there is a good chance that the resistance at 1.6663 will soon give in. If this is the case, then the Cable will most likely set its course towards 1.6823, Feb 17 high.
© Dukascopy Bank SA