GBP/USD trade idea: the pound in bad shape after inflation

GBP/USD could break out from the bottom of its ascending triangle

From a technical analysis perspective, the underlying trend of GBP/USD has undoubtedly been bearish since last year as evidenced by the 200 session moving average, but in the short term the exchange rate appears to be moving in what looks like an ascending triangle.

An exit from the bottom seems the most likely scenario given the fundamentals, which would open the way for a return to the September low of $1.0350. Conversely, an exit from the top would pave the way for a rally to $1.20, but this scenario would require good news in the UK or Europe…

Entry: Sell below $1.1150

Stop: $1.1400

Target: $1.0500

Risk/return ratio: >2

Follow the development of the GBP/USD price with IG.

.

Leave a Comment