© Dukascopy Bank SA
An ascending triangle that emerged in the 4H chart for the Cable implies that the break-out will happen to the downside. This is because of an earlier selloff of the Pound in February when it had lost more than eight figures to stop a drop at only the 1.3834 mark. Now GBP/USD is probing the 200-period SMA, which is giving the way forward to the green uptrend at 1.4163. By crossing it, the focus will shift to the 1.40 level that is guarded by the monthly S1. As for probability of a recovery, all chances are being diminished by the fact that the pair will inevitably have to confront a difficult resistance cluster near 1.425. According to the long-term technical indicators, it is unlikely to give up to bullish pressure.
© Dukascopy Bank SA