GBP/USD is tracing out a right-angled triangle. There was a temporary break to the downside this morning but no follow-through. We are now back in the ‘range’ and a break out higher or lower is still possible, although a break higher is more likely given the right-angled shape. A rise above 1.5620 ought to give confirmation of a bullish break targeting 1.5670 relatively easily. A fall below 1.5450 would confirm a breakdown with a dependable target at 1.5385.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst