GBP/USD – The Cable Pair May Resume Bearish Trend Again
Take Profit: 1.2200
Stop Loss: 1.2350
Timeline: 1-2 days
Buy Stop: 1.2340
Take Profit: 1.2435
Stop Loss : 1.2250
The cable pair was seen forming 2 bearish patterns on the 4H charts. Firstly, it formed a double-top pattern with the neckline touching 1.2198 and upper part at 1.2350. Then there was also a rising wedge pattern formed in black colour. But it looked lingering around the first resistance of the Woodie pivot point. So, there is a strong possibility that the GBP/USD pair may resume bearish trend again. We did see a drop in the morning with the USD and stock market rallying along with the retreat of US bond yields.
Lately, the market is experiencing a risk-on sentiment as traders are expecting an end to the banking crisis. We saw an uptrend in bank stocks which again reflected on the top indices rising as Dow Jones and S&P 500 went up by more than 50 basis points. The bond yields were seen falling with a strong pull back. The most relevant data release concerning the pair will be the personal consumption expenditure index scheduled for Friday.