GBP/USD tries to reverse the downward trend - Technical Analysis - 22-01-2016
GBP/USD rose in the short term and intraday levels trading, attempting to recover some lost ground and reverse the main downward trend, which still dominates the pair's movements in the short and medium terms, while being affected by a previously-forming negative pattern, the Symmetrical Triangle, as shown in the attached chart, with continuous negative pressure from the SMA for the last 50 days period, while noting that relative power indicators have reached extremely overbought levels.
Therefore we expect more gains to come for the pair in the short term as it enters a correctional phase, targeting the resistance of 0.7100, before bouncing lower again, as long as the support of 0.6910 holds on.
Trend
Bullish