GBP/USD outlook: Clear break out of triangle to provide fresh direction signal

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable probes below triangle support line in early Friday, after repeated rejections at the upper boundary of the pattern, signaled that bulls are lacking momentum, despite positive UK inflation data.

Fresh weakness is mainly driven by strength of the dollar on growing hopes that the Fed may start tightening earlier than expected.

Daily studies show fresh negative momentum and moving averages back to a bearish setup that supports a negative scenario, which requires close below the triangle, to signal an end of a corrective phase.

Conversely, the extended sideways mode could be expected on failure to break lower and return to triangle, while lift above the triangle would generate bullish signal.

Res: 1.3853; 1.3875; 1.3904; 1.3929.
Sup: 1.3791; 1.3755; 1.3731; 1.3688.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.3977
2. R2 1.3938
3. R1 1.3883
PP 1.3844
1. S1 1.3789
2. S2 1.375
3. S3 1.3695

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.