GBP/USD analysis: Breaks triangle pattern
|GBP/USD
As explained on Thursday, all triangle patterns are eventually broken. The ascending triangle of the GBP/USD was broken to the downside. However, the sharp break out was stopped by the 100-hour simple moving average at the 1.3780 level. Afterwards, the pair traded sideways between the resistance of the 55-hour SMA and the support of the 100-hour SMA.
The sideways trading ended, as the UK Purchasing Managers Indices were released at 08:30 GMT. The rate increased volatility. Namely, initially the pair declined below the 100-hour SMA, just before the data was released. The data released was better than forecast. Due to that reason a 30 pip jump occurred. Since then, the pair had been ignoring the SMAs, as it appears to be looking for direction.
In the case of a surge, the GBP/USD might find resistance in the weekly R1 simple pivot point at 1.3830 and this week's high levels at 1.3835. Above these levels, the weekly R2 at 1.3904 and the 1.3900 mark could provide resistance.
However, a decline might look for support first in the 1.3743 level, which is this week's low level. Below that, the 200-hour SMA at 1.3730 might serve as a support level.
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