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GBP/USD Price Analysis: Symmetrical triangle breakout eyes 1.2665-70 supply zone

GBP/USD Price Analysis: Symmetrical triangle breakout eyes 1.2665-70 supply zone

  • GBP/USD catches aggressive bids and rebounds swiftly from levels ahead of the 1.2500 mark.
  • Sustained move beyond a symmetrical triangle was seen as a fresh trigger for bullish traders.
  • The stage seems all set for a move towards 1.2665-70 supply zone en-route the 1.2700 level.

The GBP/USD pair continued gaining strong positive traction through the mid-European session and jumped to three-day tops, around the 1.2635-40 region in the last hour.

The early downtick attracted some dip-buying near an important confluence region, comprising of the 38.2% Fibonacci level of the 1.2252-1.2670 positive move and a multi-day-old ascending trend-line. The mentioned trend-line constituted the formation of a symmetrical triangle.

A sustained move beyond the triangle resistance was seen as a fresh trigger for intraday bulls. This, in turn, prompted some short-covering move and was seen as one of the key factors behind the pair's latest leg of a sudden spike witnessed over the past hour or so.

 

Meanwhile, oscillators on the daily chart maintained their bullish bias and have again started gaining positive traction on the 4-hourly chart. The set-up supports prospects for additional gains, albeit overbought conditions on the 1-hourly chart warrant some caution.

Nevertheless, a convincing breakthrough the triangle might have already set the stage for a move towards the 1.2665-70 supply zone. Some follow-through buying has the potential to lift the pair further beyond the 1.2700 mark, towards retesting June daily closing highs, around mid-1.2745 region.

On the flip side, any meaningful pullback below the 1.2600 mark might now seem to find some support near the 23.6% Fibo. level, around the 1.2570 region, below which the pair might slip back towards testing the triangle support, currently near the 1.2520 area.
 

GBP/USD 4-hourly chart

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Technical levels to watch

GBP/USD

OVERVIEW
Today last price 1.2634
Today Daily Change 0.0066
Today Daily Change % 0.53
Today daily open 1.2568
 
TRENDS
Daily SMA20 1.2499
Daily SMA50 1.2448
Daily SMA100 1.242
Daily SMA200 1.2704
 
LEVELS
Previous Daily High 1.2574
Previous Daily Low 1.2512
Previous Weekly High 1.2666
Previous Weekly Low 1.248
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.2551
Daily Fibonacci 61.8% 1.2536
Daily Pivot Point S1 1.2528
Daily Pivot Point S2 1.2489
Daily Pivot Point S3 1.2466
Daily Pivot Point R1 1.2591
Daily Pivot Point R2 1.2614
Daily Pivot Point R3 1.2653

 

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