The dollar's volatility led to monster rallies in the Sterling, euro and Australian dollar. However, the move in the Sterling will look to digest some of its gains, as we've seen with the euro.
The four hour chart shows price action is still relatively bullish near-term, but the GBPUSD is resting on the support of an ascending channel that is within a much larger symmetrical triangle.
Channel support also has price action support of 1.5343, as well as a series of key moving averages. There is the potential for a 20/200 EMA bullish crossover, which could help the pair challenge the descending trend line.
However, if prices begin to break down, the 72 EMA can converge with the 50 and cause a bearish convergence. Cable would seek out 1.5259 as support.
In regards to the triangle, a breakout of the triangle would extend the channel. A close above 1.5441 would confirm the breakout and the upside target can be seen at 1.5519.
If the rally breaks down and closes below triangle support, expect the pair to find support at 1.5120.
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The four hour chart shows price action is still relatively bullish near-term, but the GBPUSD is resting on the support of an ascending channel that is within a much larger symmetrical triangle.
Channel support also has price action support of 1.5343, as well as a series of key moving averages. There is the potential for a 20/200 EMA bullish crossover, which could help the pair challenge the descending trend line.
However, if prices begin to break down, the 72 EMA can converge with the 50 and cause a bearish convergence. Cable would seek out 1.5259 as support.
In regards to the triangle, a breakout of the triangle would extend the channel. A close above 1.5441 would confirm the breakout and the upside target can be seen at 1.5519.
If the rally breaks down and closes below triangle support, expect the pair to find support at 1.5120.
Feel free to contact me or check out my work:
Twitter: lemieux_26
Bullion.Directory: bullion.directory/ab...christopher-lemieux/
