British pound trades in wedge and can rose to resistance line

[Anne Chowdhury]

Hello traders, I want share with you my opinion about GBP/USD. Looking at the chart, we can see how the price formed the seller zone 1.2275-1.2310 and continued to move up. 

The British Pound reached the level 1.2540, made a deep correction, continued to rise and broke through it. Subsequently, the price rose to the level 1.2680, from where it began a downward movement. 

The British Pound continued to decline and eventually created a downward wedge. For a long time, the price has been trading inside the wedge and not so long ago retested the resistance line and continued to decline. 

The British Pound went down, retested the support line of the wedge and, after a small upward correction, made a fake breakout support and retested the buyer zone. 

The price returned to the within of the wedge and began to rise. Now the price is below the resistance line, but can continue to rise and break through it. I think the downward movement can continue, but first the price can make an upward correction. 

In this case, I set the target at level 1.2400, which coincides with the resistance line of wedge. Please share this idea with your friends and press the like button.

 

https://topgoldforum.com/uploads/monthly_2023_05/Britishpoundtradesinwedgeandcanrosetoresistanceline.thumb.png.c5c9ececd4b6fb219335240e4938ceda.png

Edited May 28, 2023 by Anne Chowdhury