GBP/USD is recovering after falling to the lowest level this year and has formed an Ascending Broadening Wedge on the 30M chart. The pattern has 45% quality and 75% magnitude in the 111-bar period.
The pattern started when pair rebounded from 1.5408 and after testing support levels at 1.5321 and 1.5430 it has slowed down at near pattern resistance level at 1.5582 where the pair is currently trading. Indicators on aggregate suggest clear emerging bullish trends on all the time horizons and the current market sentiment is slightly in favor for the bulls as well. Long traders could focus on the pattern resistance level at 1.5596. If this level will be breached, next target could be at a daily resistance level at 1.5614.
The RSI on the 30M time horizon and the Stochastic indicator on the 1H time horizon point at bearish market outbreak. Short traders could focus on the support level at 1.5557. If the pair breaches this level, next possible target could be at 1.5529.