It’s make or break for Cable!
GBP/USD is consolidating in a triangle pattern that could take the pair in either direction.
Which way will the pair go in the next trading sessions? Let’s check out the 4-hour chart for clues:
GBP/USD: 4-hour
GBP/USD 4-hour Forex Chart by TradingView
It is a busy week for GBP/USD as traders juggle Uncle Sam’s delayed data releases along with the U.K. autumn budget announcement.
With a lot of moving parts and very little space to avoid a strong breakout, traders may have to pick a side sooner rather than later.
GBP/USD has been stuck inside a symmetrical triangle all month, printing lower highs but also higher highs as traders feel out the edges.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
All that back and forth has pulled the pair into a tight spot near the 1.3100 handle, an area that lines up with the Pivot Point at 1.3109, the 100 SMA, and the top of the triangle.
A steady push above the 100 SMA gives GBP/USD room to travel toward the 1.3150 inflection point, and even the 1.3180 R1 Pivot Point or the 1.3200 psychological level.
A dip back to the 1.3050 previous support could keep the pair locked inside the triangle and stretch the consolidation.
But if GBP/USD trades consistently below 1.3050 or the S1 Pivot Point at 1.3025, the door opens for a clean downside break that could pull Cable toward the S2 zone at 1.2954.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.