GBP/USD: technical analysis – September 4, 2012

GBP/USD is showing a possible double-top pattern at the highs which is bearish – despite the recent triangle breakout higher. Unfortunately there has not been much follow-through since the break and so I am not as bullish as before. A breach of the lows at 1.5754 would trigger the downside target of 1.5595. The most recent rally and breakout could be labelled an Elliot wave ‘E’ and mean that the triangle is still completing and will actually roll-over and break lower eventually. Alternatively further upside is capped by the monthly pivot at 1.6020.

Written by Forex4you