GBP/USD Price Analysis: Aims for a Descending Triangle breakout above 1.2100


  • A recovery in the risk-on mood has underpinned the Pound Sterling.
  • The Cable is hovering around the downward-sloping trendline of the Descending Triangle pattern.
  • A break inside the bullish range of 60.00-80.00 by the RSI (14) will trigger the bullish momentum.

The GBP/USD pair is displaying a lackluster performance in the Asian session as investors are restricting themselves from making large positions amid the festive market mood. The Cable is oscillating in a 10-pips range below 1.2060 and is likely to remain sideways ahead.

Meanwhile, the US Dollar Index (DXY) has attempted a recovery after dropping to near 103.50. The USD Index witnessed an intense sell-off on Thursday amid a recovery in the risk-appetite theme. The return on 10-year US Treasury bonds has dropped below 3.83% in early trade.

The Cable is gathering strength to deliver a breakout of the Descending Triangle chart pattern on an hourly scale. The major is hovering around the downward-sloping trendline is plotted from December 19 high at 1.2242 while the horizontal support of the aforementioned chart pattern is placed from the December 22 low at 1.1992.

The pair is currently holding above the 20-period Exponential Moving Average (EMA) around 1.2050, which indicates the short-term upside trend is still solid.

While the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation ahead. A break inside the bullish range of 60.00-80.00 will trigger the bullish momentum.

Should the Cable surpasses December 27 high at 1.2112 decisively, Pound Sterling bulls will drive the asset toward December 21 high at 1.2189 followed by December 19 high at 1.2242.

On the flip side, a decisive downside below December 22 low at 1.1992 will trigger a breakdown of the Descending Triangle and will drag the Cable toward November 29 low at 1.1940. A slippage below the latter will expose the Cable for more weakness toward November 30 low around 1.1900.

GBP/USD hourly chart

GBP/USD

Overview
Today last price 1.2055
Today Daily Change -0.0011
Today Daily Change % -0.09
Today daily open 1.2066
 
Trends
Daily SMA20 1.2168
Daily SMA50 1.189
Daily SMA100 1.1668
Daily SMA200 1.2052
 
Levels
Previous Daily High 1.2079
Previous Daily Low 1.2015
Previous Weekly High 1.2242
Previous Weekly Low 1.1992
Previous Monthly High 1.2154
Previous Monthly Low 1.1147
Daily Fibonacci 38.2% 1.2054
Daily Fibonacci 61.8% 1.2039
Daily Pivot Point S1 1.2028
Daily Pivot Point S2 1.1989
Daily Pivot Point S3 1.1964
Daily Pivot Point R1 1.2092
Daily Pivot Point R2 1.2117
Daily Pivot Point R3 1.2156

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: A deeper retracement looks likely

AUD/USD: A deeper retracement looks likely

Finally, AUD/USD regain some composure and partially recouped ground lost in the previous day helped by the increasing selling bias hurting the US Dollar ahead of the publication of the key US labour market report on Friday

AUD/USD News
EUR/USD gears up for a probable move to 1.0600

EUR/USD gears up for a probable move to 1.0600

EUR/USD advanced for the third consecutive day on Thursday, supported by persistent selling pressure on the Greenback and cautious sentiment ahead of the US Nonfarm Payrolls report on Friday.

EUR/USD News
Gold tumbles as US yields jump as traders await US Nonfarm Payrolls

Gold tumbles as US yields jump as traders await US Nonfarm Payrolls

Gold price retreats on Thursday as investors digested the latest US jobless claims data, ahead of the release of November’s Nonfarm Payrolls figures. A jump in US Treasury bond yields weighed on the yellow metal, which dropped 0.85%, trading at $2,626.

Gold News
Gamestop, GME meme coin surge following Roaring Kitty return

Gamestop, GME meme coin surge following Roaring Kitty return

Gamestop-based meme coins rose more than 40% on Thursday after popular trader, Keith Gill, stirred excitement in the meme coin sector with a post featuring a Time Magazine picture on social media platform X.

Read more
GBP/USD loses momentum and revisits 1.2750

GBP/USD loses momentum and revisits 1.2750

Following an initial move to peaks around 1.2770, GBP/USD now surrenders part of that advance and slips back to the mid-1.2700s amid the steady downtrend in the Greenback.

GBP/USD News
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures