GBP/USD could break out from the bottom of its ascending triangle
From a technical analysis perspective, the underlying trend for GBP/USD has been unquestionably bearish since last year as evidenced by the 200 session moving average, but in the short term the exchange rate appears to be moving in what looks like to an ascending triangle.
An exit from the bottom seems the most likely scenario given the fundamentals, which would open the way for a return to the September low at $1.0350. Conversely, an exit from the top would pave the way for a rally to $1.20, but this scenario will require great news in the UK or Europe…
Entry: Sell below $1.1150
Stop: $1.1400
Goal: $1.0500
Risk/return ratio: >2
Follow the evolution of the GBP/USD price with IG.
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