GBP/USD Stabilizing Following Failed Test of Upper Boundary of Triangle

London (April 14)  GBP/USD reached a new high for the week at 1.2575 in Thursday’s trading. However, the pair reversed to the downside after coming within reach of the upper boundary of the symmetrical triangle which has been in place since the pair formed a high back in early December. At present, GBP/USD is marginally higher, trading at the 1.2510 level.

The current bias is to the upside, as the Stochastic is moving higher, but still below the overbought zone. Resistance is now at Thursday’s high, which corresponds to the upper boundary of the symmetrical triangle shown on the daily chart below.

On the downside, support stands near the mid-point of Tuesday’s long green candle, which comes in near the 1.2450 level. On a drop below this area, support is at April 7th’s 1.2365 low, which represents a test of the 50% retracement level of the March advance. On an eventual drop below this level, the next target would become the 61.8% retracement level at the 1.2300 level.

In today’s session, the US stock and bond markets will be closed in observance of Good Friday. However, it is not an official Federal holiday. Thus, the Bureau of Labor Statistics will release the March Consumer Price Index at 08:30 ET and the Commerce Department will release the March data on retail and food sales at 08:30 ET and the February business inventories at 10:00 ET.

Source: BusinessCalendar