Sasha Singh
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GBPUSD : Break Down From Rising Wedge, Might Attempt Again For Surge !!

GBPUSD : 4 hour Chart

GBPUSD confirms the bearish trend today by breaking down from the rising wedge pattern on the 4 hour chart. The nearest support for the pair was at 1.6128 but it was not able to hold gains above it so declined further to the next support level that is at 1.6031. The moving average pattern on the chart is also such that the bearish trend remain intact. 

"The losses came after the release of meeting minutes of Bank of England which showed that the members voted unanimously to keep the asset purchase facility program on hold. However only 2 members out of 9 voted for an increase of interest rates and rest voted to hold interest rate at a record low of .5%. Investors are now looking for the series of US data releasing today."

GBPUSD : Daily Chart

On the other on the daily chart, the pair is still following a falling wedge pattern according to which the pair should surge breaking above the resistance trend line of the wedge. Currently it is testing the key support at 1.6009 and if it declines below this support it should find another support from the support trend line of the wedge. The 100 day SMA just crossed below the 200 day SMA signaling a bearish confirmation. So the pair might continue to decline for now but in future the pair is expected to rise breaking above the falling wedge.