GBP/USD Price Analysis: A breakout of triangle looks likely amid positive market impulse
- GBP/USD is hovering near the edge of the Symmetrical Triangle pattern for a breakout.
- Economic events such as the US Inflation and the UK employment data might keep Cable volatile.
- The RSI (14) is oscillating in the bullish range of 60.00-80.00, which indicates that the upside momentum is already active.
The GBP/USD pair has refreshed its day’s high above the critical resistance of 1.2150 in the Asian session. The Cable has picked strength amid the improved risk appetite of investors after they digested the United States inflation-inspired anxiety.
S&P500 futures are displaying a subdued performance after a bullish Monday, portraying a minor caution amid overall positive sentiment. The US Dollar Index (DXY) has further dropped below 102.85, showing a sheer decline in the safe-haven’s appeal. The Pound Sterling will display a power-pack action after the release of the United Kingdom employment data.
GBP/USD is hovering near the edge of the Symmetrical Triangle chart pattern formed on an hourly scale. The upward-sloping trendline of the aforementioned chart pattern is placed from February 7 low at 1.1961 while the downward-sloping trendline is plotted from February 3 high at 1.2264.
Advancing 20-period Exponential Moving Average (EMA) at 1.2118, adds to the upside filters.
The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates that the upside momentum is already active.
A confident breakout of the Symmetrical Triangle above February 9 high at 1.2192 will trigger the volatility expansion, which will drive the asset toward February 3 high at 1.2264. A breach of the latter will expose the asset to the round-level resistance of 1.2300.
On the contrary, a decline in the Cable below February 9 low at 1.2057 will drag the asset toward January 3 low at 1.1900 followed by horizontal support placed from January 6 low around 1.1841.
GBP/USD hourly chart
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
