GBP/USD: technical analysis
Yesterday a consolidation was ended, which led to the really tricky price movement afterwards. Finally, the downward trend was broken and the price faced a resistance at 1.4286. It’s likely that the market is going to decline towards a support area between the levels 1.4234 – 1.4193. If we see a pullback from this area the pair might start a new upward movement to a resistance at 1.4393.
We’ve got a “Triangle” pattern, which brought a bullish rally to the market. This movement was ended by the “V Top” pattern at 1.4316, so now we can see a consolidation in progress near the trend line. It’s likely that bears will go deeper towards a support area between the 55 Moving Average line and the level 1.4234. However, bulls might come back afterwards, so we should keep in mind an important resistance at 1.4371.