GBPUSD Respects Symmetrical Triangle Pattern

Market Analysis – June 17

GBPUSD currency pair is showing signs of a potential bearish reversal after encountering significant resistance on the daily timeframe. The formation of a double top pattern at this resistance level suggests a possible shift in market momentum.

Key Technical Levels for GBP/USD:
Demand Zones: 1.2890, 1.3140, 1.3200
Supply Zones: 1.2680, 1.2450, 1.2300
Long-Term Outlook for GBPUSD: Bullish
Since March 2023, GBP/USD has been forming a pronounced symmetrical triangle pattern, characterized by connecting major peaks and troughs using trendlines to forecast potential market reversals. A review of the 24-hour chart reveals a contraction in the symmetrical triangle, with each successive trend being shorter than the previous one, suggesting a buildup of market tension.

The latest uptrend began following a rebound from the support trendline of the symmetrical triangle at a point where the market was deemed to be oversold, leading to a bearish reversal. The recent test of the resistance trendline has resulted in the formation of a double top, typically a precursor to a bearish reversal.
Short-Term Trend for GBPUSD: Bullish
On lower timeframes, the GBP/USD pair maintains a bullish posture. However, the price action is currently retracing towards a bearish order block, presenting opportunities for short positions. This market behavior is often referred to as a Return to Order Block (RTO). Such retracements, when followed by reversals, are considered optimal setups for informed trading decisions, as frequently highlighted by the best forex signals providers on Telegram channels.

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