Key Highlights
· The British pound recovered nicely from the 1.3790 swing low against the US dollar.
· There is a key contracting triangle forming with resistance at 1.3930 on the 4-hours chart of GBP/USD.
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GBP/USDTechnical Analysis
The British pound formed a support base just below 1.3800 against the US dollar and recovered. The GBP/USD pair is now preparing for the next move with resistance at 1.3930 and support at 1.3840.
Looking at the 4-hour chart of GBP/USD, there is a key contracting triangle forming with resistance at 1.3930. The pair has moved above the 38.2% Fib retracement level of the last decline from the 1.4069 high to 1.3716 low.
However, it is facing a major hurdle on the upside near 1.3920-30. The stated zone is also close to the 61.8% Fib retracement level of the last decline from the 1.4069 high to 1.3716 low.
On the downside, the triangle support is at 1.3840. A break below 1.3840 could push the pair back towards 1.3800.
