GBP/USD has been falling since July 14th and now is looking like its trapped within what looks to be a Descending Triangle or Pennant considering the current Low is higher in the Support zone then the Previous.
The Descending Triangle made of Lower Highs into the Support Zone should typically give us a Bearish Break where price continues LOWER!
-What makes this a special case to me is the possible presence of a Pennant!
The Pennant is made up of Lower Highs into Higher Lows, consolidating into a "Pinch Point" where eventually price will break Bullish OR Bearish.
-Typically the break will happen in the direction price was heading prior to entering the pattern BUT there is potential for price to play within the Pinch Point until giving a Proper Break!!
**Patterns are known to fail 1/3 of the time SO BEWARE OF FALSE BREAKS!!!
-Fundamentally, USD & GBP have:
Employment Cost & Consumer Confidence (USD) - Tuesday
ADP Non-Farm Employment, JOLT Job Openings, Federal Funds Rate & FOMC Statement and Conference (USD) - Wednesday
Monetary Policy Statement, Official Bank Rate Votes, Bailey Speaking (GBP) and Unemployment Claims (USD) - Thursday
Average Hourly Earnings, Non-Farm Employment Change & Unemployment Rate (USD) -Friday
**With the heavy news week, ANYTHING CAN HAPPEN!!
My gut is giving me BEARISH vibes with the analysis of this chart and I believe USD could be finding support after its stunning comeback later in the week last week!!
The Descending Triangle made of Lower Highs into the Support Zone should typically give us a Bearish Break where price continues LOWER!
-What makes this a special case to me is the possible presence of a Pennant!
The Pennant is made up of Lower Highs into Higher Lows, consolidating into a "Pinch Point" where eventually price will break Bullish OR Bearish.
-Typically the break will happen in the direction price was heading prior to entering the pattern BUT there is potential for price to play within the Pinch Point until giving a Proper Break!!
**Patterns are known to fail 1/3 of the time SO BEWARE OF FALSE BREAKS!!!
-Fundamentally, USD & GBP have:
Employment Cost & Consumer Confidence (USD) - Tuesday
ADP Non-Farm Employment, JOLT Job Openings, Federal Funds Rate & FOMC Statement and Conference (USD) - Wednesday
Monetary Policy Statement, Official Bank Rate Votes, Bailey Speaking (GBP) and Unemployment Claims (USD) - Thursday
Average Hourly Earnings, Non-Farm Employment Change & Unemployment Rate (USD) -Friday
**With the heavy news week, ANYTHING CAN HAPPEN!!
My gut is giving me BEARISH vibes with the analysis of this chart and I believe USD could be finding support after its stunning comeback later in the week last week!!
