Sasha Singh
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GBPUSD : Broke Out From Ascending Triangle But Gain Seems Limited

GBPUSD today broke out from the ascending triangle after the release of positive U.K. employment data which showed that "the claimant count declined by 37200 last month compared to expectations for a decline of 30K. Economists were expecting a decline of 29700. A separate report showed that the rate of unemployment decline to 6.2% in three months to July which is the lowest reading since December 2008 better than the expected reading of 6.3%."

GBPUSD : 4 Hour Chart

On the 4 hour chart, the pair broke out from the resistance of the ascending triangle and above the 50 day SMA. The nearest resistance it may find is at 1.6342. However if it breaks above this resistance and above 100 day SMA it will confirm a bullish signal.

GBPUSD : Daily Chart

Now if looking at the daily chart, the 50 day SMA is crossing towards the 200 day SMA signaling a downtrend continuation. So the gains seems limited and the pair will again turn towards the negative territory. Also there is a falling resistance trend line which is preventing the pair in rising above it. So the pair might decline breaking below the rising support trend line of the triangle as seen on the chart.