Sasha Singh
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GBPUSD : Broke Out From Falling Wedge, BOE Meeting Minutes Seems Risky for the Pair

GBPUSD : Daily Chart

GBPUSD broke out from the resistance trend line of the falling wedge on the daily chart signaling a bullish trend on the chart. However the 100 day SMA just crossed down below the 200 day SMA and currently the pattern is such that it is signaling a downtrend continuation. So the gains seems to be capped. If the pair is able to hold gains above the resistance trend line, the nearest resistance it may find is at 1.6232 or at 1.6439. Investors will now be looking for the Bank of England Monetary Policy Meeting Minutes releasing tomorrow at 4:30 AM EDT which might be a risk for the pair as the bank might again reiterate that the interest rates will remain low for a bit longer. Market sold US dollar at the start of this week on the news that US economy may be cooling and therefore offered some support to the major counterparts like EUR and GBP.

GBPUSD : 4 Hour Chart

On the 4 hour chart, the pair seems like following a rising wedge pattern which gives a bearish signal so we might see the pair trimming its gains now. The dovish is expected from BOE and it will be a major risk for GBP. The pattern of the moving averages is also such that it is signaling a downtrend continuation. If it declines below the rising support trend line the next nearest support it may find at 1.6065.