Sustained break of 1.2755/50 will confirm rising wedge on hourly chart

  • GBP/USD portrays nearly one-week-old rising-wedge bearish formation on the hourly chart.
  • 50-hour EMA adds strength to the support.

With the pullback from multi-month high easing worries of the Cable sellers, GBP/USD highlights a bearish chart pattern, rising-wedge, at the top as it declines to 1.2800 while heading into the London open on Thursday.

The bearish formation on the hourly (H1) chart gets confirmed if prices slip below 1.2755/50 support-zone, comprising formation’s lower line and 50-hour Exponential Moving Average (EMA).

In doing so, the fresh downturn towards 61.8% Fibonacci retracement near 1.2450 could be initiated theoretically. However, intermediate halts to 1.2615 and weekly low surrounding 1.2515 can’t be denied.

Should bears refrain from respecting 1.2450, 1.2330 and 1.2200 will be on their radars.

Alternatively, pair’s run-up beyond 1.2850 should recall 1.2915 and 1.3000 mark back to the chart.

GBP/USD hourly chart

Trend: pullback expected