GBP/USD Technical Analysis: 10-day SMA offers nearby support inside multi-week-old triangle
|- GBP/USD bounces off 10-day SMA, stays inside the six-week-old symmetrical triangle.
- An upside break of the triangle needs validation from 1.3000 psychological magnet.
- Sellers can aim for 38.2% Fibonacci retracement during the pair’s drop beneath the technical pattern.
While holding tightly above the 10-day Simple Moving Average (SMA), GBP/USD takes the rounds to 1.2940 during Tuesday's Asian session. Even so, the pair remains inside a multi-week-old triangle formation.
That said, the pattern’s resistance line around 1.2975 acts as an immediate upside barrier holding the key to the pair’s run-up towards 1.3000 round-figure.
However, a sustained rise beyond the same might not refrain from challenging the May month tops surrounding 1.3180.
Alternatively, pair’s downside below 10-day SMA level of 1.2906 could trigger fresh pullback towards the triangle’s support line, near 1.2840.
In a case where prices defy the triangle formation with a break beneath 1.2840, 38.2% Fibonacci retracement level of October month upside close to 1.2700 will be on the Bears’ radar.
GBP/USD daily chart
Trend: Sideways
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.