© Dukascopy Bank SA
GBP/USD has formed a Falling Wedge pattern on the 1H chart while moving to the lowest level since mid-March at 1.563. The pattern has 71% quality and 85% magnitude in a 192-bar period.
The pattern started rebounding slightly below SMA200 at 1.612 and after testing support and resistance levels at 1.573 and 1.583 slowed near 1.565 where the pair is currently trading. Indicators on 1H and 4H time horizons do not suggest any clear market outbreak. In addition, current market sentiment is almost equally divided between bulls and bears. Long traders could focus on the resistance level at 1.567. If this level will be breached, next target could be the second resistance level at 1.571.
Majority of 1D time horizon indicators suggest that bearish market rally is highly possible. Short traders could focus on the 1.561 level. If pair breaches this level next possible target could be at 1.558 level.
© Dukascopy Bank SA