Sasha Singh
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GBPUSD : Falling Wedge Continues to Support, Might Surge Above it

GBPUSD still trading within the falling wedge on the daily chart, and was able to hold gains above the falling support trend line even after the missed U.K. claimant count, although the unemployment rate fell to the lowest level since October 2008.


 The official report showed that the claimant count fell by 18600 last month compared to the expectations for a decline of 35000 people. A separate report showed that the rate of unemployment declined to 6% in the three months to August compared to the expectations for a reading of 6.1%. 

GBPUSD : Daily Chart

The pair declined but found support from the support trend line of the wedge. A falling wedge gives a bullish signal so the pair is expected to surge breaking above the resistance trend line of the wedge. If the pair surge, it will find another resistance at 1.6279. Weak U.K. data might not have created pressure on the pair but downbeat US data provided support to the pair pushing it upward.

GBPUSD : 4 Hour Chart

On the 4 hour chart, the pair is testing the key resistance at 1.6067 and if continues to rise will find another resistance at 1.6114. However if it declines from this resistance, the support at 1.5952 might prevent the pair in declining further.