More than 6 months of movement inside the triangle
In triangular formation important is the direction of the breakout but the earlier trend also has its significance. At this point of view, on the GBPUSD pair bears had the advantage of an earlier downward trend. However, the demand has surprised investors and managed to breakout with a strong bullish candle rising over limitation of the triangle. At the same time, GBPUSD reached a key resistance level of 1.2900 and at this moment we are seeing a movement in a narrow consolidation.
Key GBPUSD behavior at 1.2900 resistance
At present, there are two main scenarios for GBPUSD. The first is consolidation under 1.2900 resistance and effective breakthrough of key resistance. Such a move could be a prelude to a change in the long-term downward trend on the GBPUSD. The second scenario assumes that the 1.2900 level will not be broken, which will end up with declines and returning the price to the interior of the previously broken triangle. Such a move could end the correction and return to declines.
Both scenarios are likely to be present and one or the other will be confirmed by price behavior at 1.2900 resistance.
