Sasha Singh
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GBPUSD : Bearish Trend Continues to Dominate, Breakdown From Descending Triangle Awaited

GBPUSD : Daily Chart

GBPUSD still consolidating within the descending triangle trend on the daily chart. The pair is currently testing the key support at 1.6162 and might break below it confirming the bearish movement for now. Seems like the U.K. current account deficit and demand for US dollar continue to weigh on the pair therefore the upbeat GDP growth data didn’t provide much support to the pair.

GBPUSD : 4 Hour Chart

On the 4 hour chart also this descending triangle trend exist signaling a bearish trend. The pair found support at 1.6162 which earlier also prevented it from declining further. However seem like previous support at 1.6206 is now acting as resistance to the pair. Even if it rises above this resistance, the falling resistance trend line will continue to resist it. 100 day SMA is also seems like acting as resistance.

A breakout from the falling resistance trend line will only reverse the current downtrend otherwise the pair is on its way to decline further. If the pair declines below the support at 1.6162, the next nearest support it may find is at 1.6103.