GBP/USD Setup To Trade on UK’s Inflation Rate

The Sterling posted massive gains after news of Brexit settlements between the EU and the UK. After months of squabbling between London and Brussels, both sides finally declared that there would be a transition period following the UK’s departure from the EU in March 2019. In response, the Pound soared dramatically against its peers. But I’m seeing good opportunities to catch today. Check this out…

GBP/USD- Potential Descending Triangle

Traders, the Cable has formed a pretty nice setup before the release of inflation figures today. Looking at the hourly chart, we can see a descending triangle pattern which is supporting the pair at $1.4020. However, resistance prevails at $1.4040.

GBP/USD – Hourly Chart

A break below $1.4020/1.4000 can lead the pair towards 1.3975 and that’s where GBP/USD completes a 61.8% Fibonacci retracement.

GBP/USD –  Key Trading Levels

Support     Resistance 

1.3943    1.4075

1.3901    1.4117

1.3835    1.4183

Key Trading Level:    1.4009

GBP/USD –  Trading Plan

Investors are advised to keep a close eye on $1.400 & 1.3985. Above these areas, the market is likely to continue its buying trend. I will be looking to take a bullish position above these areas.