GBP/USD Triangle pattern has transformed in to Ascending Triangle pattern on the 1H chart. The pattern has 80% quality and 89% magnitude in the 205-bar period.
The pattern started when the pair rebounded from 1.5768 and slowed down at 1.5621, where the pair is currently trading. Pattern’s resistance band is at 1.5686; and it is set to intersect with support band on 15th of August, 10:00 GMT. Technical indicators on aggregate point at appreciation of the pair on 1D outlook. Also it is worth mentioning that the pair is currently is testing SMA200 and pattern’s support which increases the probability that the pair will bounce towards pattern’s resistance. Long traders could set the first target at the recent peak/ daily pivot at 1.5641/45. If this level is breached, next targets could be set at the Fibonacci retracement (61.8%) at 1.5662, daily pivot at 1.5676 and the pattern’s resistance at 1.5686.
The SWFX market sentiment shows that majority, 56%, of the traders expect depreciation of the pair in the near future. However, in the range of 100 pips from the current price sell orders exceed number of buy orders only by 4% (52% vs. 48%). Short traders, who expect that the pair will breach SMA200 and pattern’s support, could set the first target at 9th of August low at 1.5606. If this level is breached, next targets could be set at Fibonacci retracement (38.2%)/daily pivot at 1.5597/95 and 8th of August low at 1.5574.