GBPUSD for more than two weeks forms a right triangle formation. The lower limit of the triangle is located in the region of 1.2090, while the upper is approaching the 1.2250 area. With such a strong downward trend we observe on GBPUSD for over two years the emergence of this formation suggests that the breakout will occur in the direction of the prevailing trend- means south.

If really breakout from the triangle will be south, the nearest bearish target will be 1.2000. In this area there has been the final GBPUSD sell-off on October 7, and additionally “round” level is here which can encourage bulls to start at least a correction and increases. But there is no certainty that the level of 1.2000 at all stops declines because the measured range after breaking out of the triangle formation reaches the level of 1.8000. Alternatively, if there has been a breaking up (which is now less likely) the nearest local resistance level will be 1.2300.

The nearest significant resistance, the break would confirm the return of the bulls on the market is only at the level of 1.2870. This level is far about 700 pips from the current location so scenario of testing that distant level in the short term is unlikely.Wykres GBPUSD dla interwału H1.Wykres GBPUSD dla interwału H4.

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