GBP/USD technical analysis: Choppy inside falling wedge amid bullish MACD

GBP/USD remains firm inside a short-term falling wedge technical pattern.
Bullish MACD favors upside movement with 4H 100MA being the key resistance to watch on bullish formation’s confirmation.

Anil Panchal FXStreet

Although repeated failures to cross a 12-day old descending trend-line portrays the GBP/USD pair’s weakness, bullish signal by the moving average convergence and divergence (MACD) indicator increases the odds for the falling wedge pattern’s confirmation and the following rise. The quote currently trades around 1.2070 before the start of the UK session on Tuesday.

An upside break of 1.2080 will confirm a bullish formation and can trigger fresh run-up towards 38.2% Fibonacci retracement level of 1.2210.

Further, 100-bar moving average (4H 100MA) at 1.2237 and 61.8% Fibonacci retracement level of 1.2327 can please the buyers during extra advances.

On the downside, 1.2045, latest low near 1.2015 and the pattern’s support around 1.2000 can keep sellers in check ahead of highlighting 2017 low near 1.1987 and 2016 trough close to 1.1800 round-figure.

GBP/USD 4-hour chart

Trend: Pullback expected

1. R3 1.2207
2. R2 1.2157
3. R1 1.2115
PP 1.2065
1. S1 1.2024
2. S2 1.1974
3. S3 1.1932

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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