GBP/USD reaching the edge of Descending Triangle – Limited Upside Potential
GBP/USD Technical Analysis
The current price of the currency pair GBP/USD has dropped below 20-Day Simple Moving Average and is poised to decline further in the coming hours. Since February, the forex pair has been moving in the descending triangle pattern, and now it has reached close to the edge. From here, the price can either rebound or continue its downward trend.
The technical indicators are all indicating indecision in the market. The Moving Average Convergence & Divergence (MACD) indicator is in the positive area but with small histograms. It suggests that the trend is neutral to bearish. Meanwhile, the Stochastic Oscillator suggests the GBP/USD pair might keep on declining as the signal line is sloping downside.
On the upside, the 100-Day SMA is acting as immediate resistance for the currency pair. The next resistance stands at 1.20870. Any break above this level would activate the third resistance where the 200-Day SMA is resting.
On the downside, the trend continuation will eventually force GBP/USD pair to break below the descending triangle pattern. After that, the pair will immediately see support at 1.19082, where the 200-Day SMA at the Daily chart is standing. The idea is to keep short till the critical support level at 1.19082.
Daily Technical Levels
| Support | Resistance |
| 1.1997 | 1.2052 |
| 1.1967 | 1.2079 |
| 1.1941 | 1.2108 |
Pivot Point: 1.2023
