GBP/USD 4H Chart: Broadening Falling Wedge

USD/TRY 1H Chart: Broadening Rising Wedge

Comment: After a bearish correction in the middle of September USD/TRY started to form a broadening rising wedge pattern.

Currently, the pair is trading near the lower trend-line of the pattern around the 100-period SMA; daily S1 and weekly R1 at 2.2763/92. These levels, all together, make a strong and reliable support level, thus a bearish break-out seems not likely. However, the SWFX traders’ think differently, as 53.47% of them are waiting for a decline. Therefore, if this previously mentioned cluster of supports holds, then the currency pair most likely will appreciate towards the 2.30 mark, while if these levels are breached then a sell-off towards 2.26 becomes the target.

GBP/USD 4H Chart: Broadening Falling Wedge

Comment: After setting a five year high at 1.7193, just slightly below the major level, the GBP/USD cross started declining. Meanwhile, the pair has formed a broadening falling wedge pattern.

At the moment, the currency pair is hovering around the major level at 1.62. Previous minor high was set at 1.6526 and the technical indicators suggest that we are not likely to see a bullish break-out for the time being, as all of them point to the downside. We also expect the pair to slide lower, even though a slight majority of the SWFX market participants anticipate an advance to come into play. The short-term target is the weekly and daily S1 at 1.6166/50.