GBP/USD technical analysis: Choppy inside descending triangle

The GBP/USD pair pulls back from short-term triangle support.
While a downside break can fetch the pair back to a multi-month low, formation resistance stands tall to question the recent advances.

Anil Panchal FXStreet

A week-old descending triangle formation triggers the GBP/USD pair’s bounce off the support as it takes the bids to 1.2440 ahead of the UK open on Wednesday.

While 1.2450 can entertain intra-day buyers, triangle resistance, at 1.2560, becomes a tough nut to crack for the bulls targeting 1.2500 round-figure.

Given the pair’s ability to rise past-1.2500, 1.2515 and 1.2560 could come back on the chart.

Alternatively, a downside break of 1.2428/24 support area can quickly fetch the quote to 1.2382 whereas 1.2365 and 1.2330 may please sellers afterward.

GBP/USD 30-minute chart

Trend: Pullback expected

1. R3 1.254
2. R2 1.2511
3. R1 1.2475
PP 1.2446
1. S1 1.241
2. S2 1.2381
3. S3 1.2344

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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