GBP/USD Price Analysis: Yet another 200 SMA rejection kicks in as risk sentiment improves

GBP/USD 4-hour chart

GBP/USD has been trading mixed over the week and could well close down. Today however the price bounced off the 200-period Simple Moving Average for the fifth time in the last month to push up once again. 

One of the other key features on the chart is the red triangle-shaped chart pattern. A break in either direction could give us clues about the future trajectory of the pair. But the downside has been breached but the bears were not able to sustain the move. If the wave low of 1.2511 gets broken it would make a lower high lower low wave pattern and the pair could then start to break lower. 

On the upside, the key resistance zone is at 1.2668. The level has been used six times as either a support or resistance zone on the chart. At the moment it does seem more likely the lower zones will be tested but moving into next week the bulls could break out. 

The indicators are in a bearish position but are turning higher at the time of writing. The Relative Strength Index is under the 50 line but tilting up and the MACD histogram is red but the bars are getting smaller. Lastly, the MACD signal lines are under the zero level but look like they are just about ready to cross over. It seems we are nicely poised leading into next week then.

Additional levels