The Cable continues chopping around between 1.46 resistance and 1.40 support but there are some other trend lines here now that are worth watching in coming sessions and especially with today’s BoE Interest rate update.
GBP/USD 4hr: The chart from this morning’s post shows how price action respected the 61/8% fib of the recent swing low move:
Clearing off the Fibonacci levels though and condensing the chart a bit shows a new triangle pattern forming up and this provides other S/R trend lines to watch before either the 1.46 or 1.40 levels might be hit:
GBP/USD daily: this recent triangle is set within a larger descending wedge. Also worth noting here now is how, until recently, price action had been forming ‘lower lows’ and ‘lower highs’ BUT with this recent triangle consolidation and move back above 1.40 support we can now see a ‘higher low’:
GBP/USD weekly: the second of the weekly charts below is a condensed chart and it is worth noting what has previously happened when price action held above the 1.40 level.
GBP/USD monthly: there hasn’t been much follow-through after the February monthly close below 1.40. Any continued hold above this level would have me adjusting the bottom triangle trend line lower:
Summary: watch the 4hr chart’s triangle trend lies for any make or break activity and, after that, keep an eye on either the 1.40 or 1.46 levels.