GBP/USD Price Analysis: Tests the upside break of triangle near 1.1350


  • An explosion of a neutral triangle results in wider ticks and heavy volume.
  • A bull cross, represented by 20-and 50-EMAs, indicates more upside ahead.
  • For a confident upside, the RSI (14) is needed to sustain in the bullish range of 60.00-80.00.

The GBP/USD pair is displaying back-and-forth moves in a narrow range of 1.1344-1.1370 in the Tokyo session. The asset has turned sideways following the footprints of the US dollar index (DXY), which is indicating volatility contraction. The risk-off market mood is gaining more traction as S&P500 futures have extended their gains. Also, the 10-year US Treasury yields have surrendered the crucial support of 4% despite firmer bets for hawkish Federal Reserve (Fed) policy.

On a four-hour scale, the pound bulls are testing the north-side break of the symmetrical triangle chart pattern.  The downward-sloping trendline of the above-mentioned chart pattern is placed from September 13 high at 1.1738 while the upward-sloping trendline is plotted from September 26 low at 1.0339. An explosion of a neutral triangle results in wider ticks and heavy volume.

A bull cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at 1.1125, adds to the upside filters.

Adding to that, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00 but requires sustaining in the range comfortably.

Going forward, an upside break of Monday’s high at 1.1440 will drive the cable towards September 14 high at 1.1590, followed by September 13 high at 1.1738.

On the flip side, a drop below the 50-EMA at 1.1200 will drag the asset toward the psychological support of 1.1000. If cable surrenders the psychological support, it will expose to more downside towards October 12 low at 1.0924.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price 1.1344
Today Daily Change -0.0012
Today Daily Change % -0.11
Today daily open 1.1356
 
Trends
Daily SMA20 1.1135
Daily SMA50 1.15
Daily SMA100 1.1835
Daily SMA200 1.2467
 
Levels
Previous Daily High 1.144
Previous Daily Low 1.1171
Previous Weekly High 1.1381
Previous Weekly Low 1.0924
Previous Monthly High 1.1738
Previous Monthly Low 1.0339
Daily Fibonacci 38.2% 1.1337
Daily Fibonacci 61.8% 1.1274
Daily Pivot Point S1 1.1204
Daily Pivot Point S2 1.1053
Daily Pivot Point S3 1.0936
Daily Pivot Point R1 1.1473
Daily Pivot Point R2 1.1591
Daily Pivot Point R3 1.1742

 

 

 

 

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