GBP/USD has been trading upwards. Anyway, the wedge formation is still bulding and it is question of the time when we may see sell off. Our advice is to watch for potential selling opportunities. The final destination is 1.2560.
White lines – Rising wedge
Red horizontal line lower – Downward projection 1.2560
GBP/USD has been trading upwards for few days but the wedge formation on the upside is present. Our advice is to be very careful with longs on GBP and to watch for selling opportunities. If you are aggressive trader, you can sell from the top of the wedge with the risk of 50-60 pips. From other side, if you are not aggressive, you can wait for potential breakout of the lower diagonal of the wedge to confirm further downward movement. The downward target is set at the price of 1.2560. Resistance levels are set at 1.2745 and 1.2820.
