GBPUSD fakes falling wedge ahead of UK employment data
GBPUSD’s corrective pullback from the yearly low confirmed a five-week-old falling wedge bullish chart pattern before dropping back to the stated bullish pattern’s resistance line as the pair traders await the UK employment report for November. Should the jobs report trigger the pair’s bounce, the late October peaks past 1.3800 are likely theoretical targets. However, 100 and 200 SMAs, respectively around 1.3310 and 1.3430, will test short-term bulls. Following that, late November’s swing high and the last monthly top, near 1.3515 and 1.3700 in that order, can probe the run-up.
Meanwhile, a downside break of the stated wedge’s upper line, close to 1.3200, will defy the bullish breakout and direct GBPUSD bears towards the 2021 bottom close to 1.3160. In a case where the cable sellers refrain from stepping back, the December 2020 low of 1.3134 and the 1.3100 will be in focus. To sum up, the pair’s declines from late October seem to have been overdone and the latest falling wedge breakout is a call to buyers during the key week comprising Fed and BOE rate decisions.
Meanwhile, a downside break of the stated wedge’s upper line, close to 1.3200, will defy the bullish breakout and direct GBPUSD bears towards the 2021 bottom close to 1.3160. In a case where the cable sellers refrain from stepping back, the December 2020 low of 1.3134 and the 1.3100 will be in focus. To sum up, the pair’s declines from late October seem to have been overdone and the latest falling wedge breakout is a call to buyers during the key week comprising Fed and BOE rate decisions.