GBP/USD: Trading within a narrowing triangle

GBP/USD is trading within a narrowing triangle or wedge. This squeeze will eventually result in the currency pair picking a direction and moving sharply, as FXStreet’s analyst Yohay Elam notes.

Key quotes

“Momentum on the four-hour chart has turned negative, but GBP/USD is trading above the 50 and 100 Simple Moving Averages, albeit below the 200 SMA.”

“Support awaits at 1.2330, which provided support on Wednesday. It is followed by 1.2250, a swing low from earlier this week.”

“Resistance awaits at 1.2430, the daily high, followed by 1.2485, Friday’s high point.”