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

EUR/USD: Is the US Dollar corrective decline over?

EUR/USD: Is the US Dollar corrective decline over? Premium

The EUR/USD pair ended a three-week losing streak, recovering towards 1.0600 before finally finding sellers. The US Dollar (USD) gapped lower at the weekly opening after reaching fresh 2024 highs against its European rival, with EUR/USD bottoming at 1.0332 on November 22.

Read full analysis
GBP/USD: Pound Sterling rebounds, not out of the woods yet

GBP/USD: Pound Sterling rebounds, not out of the woods yet Premium

The Pound Sterling (GBP) snapped a two-week downtrend and staged a comeback against the US Dollar (USD), driving the GBP/USD pair back to the 1.2700 threshold.

Read full analysis
Gold: Easing geopolitical tensions trigger profit-taking

Gold: Easing geopolitical tensions trigger profit-taking Premium

Gold (XAU/USD) declined sharply on easing geopolitical concerns on Monday and spent the rest of the week trying to recover its losses. Employment-related macroeconomic data releases from the US could alter the expectations about the Federal Reserve’s policy decision in December and trigger the next big action in XAU/USD. 

Read full analysis
Bitcoin: A healthy correction

Bitcoin: A healthy correction

Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K. 

Read full analysis
US Dollar flat ahead of weekend full of uncertainties over France's budget

US Dollar flat ahead of weekend full of uncertainties over France's budget

The US Dollar (USD) is recovering with the US trading session opening on Black Friday. The rally in the Euro which was weighing on the US Dollar and the US Dollar Index (DXY), is fading at the start of the US trading session.

Read full analysis
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