GBP/USD Rebounds and Tests Resistance at 1.2050 Within Rising Triangle, Upside Potential Limited

GBP/USD rebounds from week-start losses and tests the top line of a three-day rising triangle, reaching 1.2045 ahead of the London.

Arslan Butt•Tuesday, March 7, 2023•1 min read

[[GBP/USD]] rebounds from week-start losses and tests the top line of a three-day rising triangle, reaching 1.2045 ahead of the London market opening on Tuesday. The quote trades above the 200-Hour Moving Average (HMA), and bullish MACD signals help GBP/USD buyers. This makes it likely that the horizontal resistance around 1.2050 will be broken to the upside in the near future.

If successful, the cable pair will overcome the past Wednesday’s swing high at 1.2090 and 1.2100 before reaching the two-week-old horizontal resistance level at 1.2145-50. However, if the lower line of the triangle, now approaching 1.2025, is breached, GBP/USD bears would need confirmation from the 200-HMA level at 1.2015 to sustain a downtrend.

The psychological level of 1.2000 and 1.1960 may pose a challenge to GBP/USD sellers before heading towards a broad support zone from February 17 to 1.1930. In case of a breach of the 1.1915 support level, the 1.1900 round figure may serve as an additional filter to the downside.

In summary, GBP/USD is expected to rise further, but its upside potential may be limited.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.