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MTrading Team • 2024-01-24

GBPUSD rebounds within bullish triangle as UK, US PMIs loom

GBPUSD rebounds within bullish triangle as UK, US PMIs loom

GBPUSD floats above the 200-bar Exponential Moving Average (EMA) as traders brace for the monthly activity data from the UK and the US early Wednesday. In doing so, the Cable pair reverses the previous day’s losses while staying firmer within a one-month-old descending triangle formation, also known as the bullish triangle. Apart from the pair’s recovery from the key EMA and bullish chart pattern, the upbeat RSI (14) line also favors the continuation of the Pound Sterling’s gradual rebound. However, a clear upside beak of the stated triangle, currently between 1.2600 and 1.2750, becomes necessary to convince the buyers. Following that, the quote’s run-up to the previous monthly high surrounding 1.2830 becomes imminent. However, the bull’s dominance past 1.2830 will enable the pair to aim for the 1.3000 threshold.

On the contrary, the 200-EMA level surrounding 1.2660 restricts the immediate downside of the GBPUSD pair ahead of the aforementioned triangle’s bottom line, close to 1.2600. In a case where the Pound Sterling drops below 1.2600, the odds of witnessing a quick fall toward December’s low of around 1.2500 can’t be ruled out. Should the Cable bears keep the reins past 1.2500, the lows marked on November 22 and 17, respectively near 1.2445 and 1.2375, will test the downside momentum.

To sum up, the GBPUSD pair buyers flex muscles ahead of the key Purchasing Managers Index (PMI) data for January from the UK and the US.

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