GBP/USD Price Analysis: Consolidating in a contracting triangle

GBP/USD is consolidating in a narrowing price range.
A range breakdown looks likely as Monday's candle indicates bull fatigue.

Omkar Godbole FXStreet Contributor

GBP/USD is lacking a clear directional bias for the second day and is trapped inside a symmetrical triangle or a contracting price range, as seen on the 15-minute chart.

An upside breakout would open the doors to re-test and possible break above the March 27 high of 1.2485. Alternatively, a range breakdown would imply an end of the bounce from the March 20 low of 1.1410 and could yield a drop to the hourly chart horizontal support at 1.2305.

The relative strength index on the 4-hour chart has dived out of an ascending trendline rising from March 23 lows. Meanwhile, Monday's inside day Doji candle is indicating bull fatigue.

As a result, the pair is more likely to suffer a symmetrical triangle breakdown. At press time, GBP/USD is trading at 1.2370, representing moderate losses on the day.

Hourly chart

Trend: Neutral-to-bearish

Technical levels

GBP/USD

Overview
Today last price	1.2372
Today Daily Change	-0.0044
Today Daily Change %	-0.35
Today daily open	1.2416

Trends
Daily SMA20	1.2334
Daily SMA50	1.2726
Daily SMA100	1.2882
Daily SMA200	1.2668

Levels
Previous Daily High	1.2467
Previous Daily Low	1.2318
Previous Weekly High	1.2486
Previous Weekly Low	1.1447
Previous Monthly High	1.3204
Previous Monthly Low	1.2726
Daily Fibonacci 38.2%	1.2375
Daily Fibonacci 61.8%	1.241
Daily Pivot Point S1	1.2334
Daily Pivot Point S2	1.2251
Daily Pivot Point S3	1.2184
Daily Pivot Point R1	1.2483
Daily Pivot Point R2	1.255
Daily Pivot Point R3	1.2632

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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