GBP/USD technical analysis: Choppy inside falling wedge amid bullish MACD
|- GBP/USD remains firm inside a short-term falling wedge technical pattern.
- Bullish MACD favors upside movement with 4H 100MA being the key resistance to watch on bullish formation’s confirmation.
Although repeated failures to cross a 12-day old descending trend-line portrays the GBP/USD pair’s weakness, bullish signal by the moving average convergence and divergence (MACD) indicator increases the odds for the falling wedge pattern’s confirmation and the following rise. The quote currently trades around 1.2070 before the start of the UK session on Tuesday.
An upside break of 1.2080 will confirm a bullish formation and can trigger fresh run-up towards 38.2% Fibonacci retracement level of 1.2210.
Further, 100-bar moving average (4H 100MA) at 1.2237 and 61.8% Fibonacci retracement level of 1.2327 can please the buyers during extra advances.
On the downside, 1.2045, latest low near 1.2015 and the pattern’s support around 1.2000 can keep sellers in check ahead of highlighting 2017 low near 1.1987 and 2016 trough close to 1.1800 round-figure.
GBP/USD 4-hour chart
Trend: Pullback expected
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