Hi Traders!
A symmetrical triangle has formed on the GBPUSD 1D chart, and we could have a breakout soon as pressure is quickly mounting on the pound.
Here are the details:
The market has found support and resistance at both the trendline support and trendline resistance of the triangle, as the market is looking for a direction. Looking at the price action, it looks bearish due to the market swings; the lows and highs are starting to get lower, and additionally, the market has broken and closed above the 20 EMA.
The fundamental news also supports our bearish view. Earlier today, the MPC Official Bank Rate Votes came out at 2-1-6 which was surprising and worse than expected. Traders will read this as uncertainty for the pound while the dollar continues to strengthen.
As long as the market is still below the 20 EMA, our view will remain bearish. We expect some more consolidation before a possible third attempt at the trendline resistance.
Preferred Direction: Sell
Technical Indicators: 20 EMA
Resistance: 1.27508
Support: 1.25965
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Trade safely and responsibly.
BluetonaFX