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

 

 

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