GBP/USD Technical Analysis: Monitoring rising wedge breaking points

GBP/USD is moving towards a breakout point within a rising wedge on the daily chart.
As can be seen in the chart below, 1.3290s is a key level and will determine whether the pair breaks out to the top side or fall out of the wedge to the downside on sustained pressures below it.
However, the price still has some work to do until it reaches the narrowest point of the wedge and a breakout would be expected to take place within the eclipse if the price supported at 1.3040/50 initially.
The price is currently heading back south and trades below the 1.3290 horizontal line with daily stochastics leaning bearish, supporting the correction to the downside within the wedge.
A break to the downside and below 1.3040 support would be expected to make way for a continuation of the mid-April commencing bear trend towards the flash crash lows in the 1.2350s and beyond.
However, GBP is trading erratically due to Brexit headlines which likely jeopardises the traditional technical chart patterns. A breakout is expected one way or another depending on the outcome of the fundamentals. In such a scenario, the flash crash lows and late 1.40 the figure guarding mid-April highs in the 1.4380s would be targetted.

Ross J Burland FXStreet

GBP/USD daily chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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