GBP/USD: large triangle

The GBP/USD pair has been forming a large triangle on the weekly chart which now looks close to completion. The exchange rate has broken partially below the lower triangle line, closing outside it yesterday. If it continues lower it could mark the beginning of a major trend down, targeting the 1.30s eventually, but I would want to see a break below the 1.5233 first as confirmation. In the short-term a move up to 1.5480 to re-test the trend-line is a possibility, whilst a move lower would target the monthly pivot at 1.5388.

Written by Forex4you