GBP/USD

I wanted to share this analysis for some time. Perfect chart pattern (long-term symmetrical triangle) on GBP/USD has almost used the maximum space available in the contracting range. For the past 3 years the currency pair contracted in a range with its boundaries standing at 1.65 and 1.52 levels. The latest re-test of the lower boundary has generated positive divergences both on the daily and weekly scale. Given the strong supports between 1.51 and 1.52 and the positive divergence both on the daily and weekly charts we can expect a rebound on GBP/USD. 200 day moving average is standing at 1.584 and the downward sloping trend resistance is at 1.56.

Conclusion: With an intermediate/long-term stop-loss at 1.51, expect a rebound towards 1.56. In the intermediate/long-term this is still a sideways consolidation.