Since Wednesday, the GBP/USD exchange rate has been testing the resistance level formed by the weekly resistance at 1.340.
GBP/USD continues trading in an ascending triangle – a bullish technical pattern. Attempts to break above the ceiling of 1.3397 have been unsuccessful, yet there is still room for a breakout.
However, any subsequent move up is more likely to meet resistance near the top barrier of the ascending triangle . The barrier is near the 1.3400 round figure mark region.
In the meantime, the formation of bearish divergence (MACD) suggests a reversal to the south could occur. Trading for a bearish move at this time is irrelevant since price is consolidating between 1.339-1.33. If a breakout below 1.33 round figure mark is seen, the trend reversal from MACD bearish divergence is confirmed. This would probably ignite an impulsive downside push back towards 1.320 region mark.
