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.

Sagar Dua FXStreet

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

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.