Rising wedge confirmation teases GBPUSD bears

After a rollercoaster ride on the BOE moves, GBPUSD bears flex muscles with eyes on Thursday’s UK Q4 GDP. The week’s start has already confirmed a rising wedge bearish pattern but the sellers need validation from 50-SMA 1.3490. Theory suggests a sustained downtrend past 1.3490 will recall 1.3330-25 levels on the chart. However, 61.8% Fibonacci retracement (Fibo.) of December-January advances near 1.3385 and the previous month’s low near 1.3355 may offer intermediate halts during the run-up.

Alternatively, corrective pullback remains elusive below the 200-SMA level of 1.3525, a break of which will direct GBPUSD buyers towards the 1.3600 threshold. It’s worth noting that a two-week-old rising trend line, forming part of wedge near 1.3635, can challenge the cable pair’s upside past 1.3600 but sustained trading beyond the same won’t hesitate to propel the rally towards 2022 peak surrounding 1.3750.

To sum up, GBPUSD consolidates recent gains but the bears need validation from data and chart both.