GBP/USD – The Bearish Trend May Return for the Pair

My FX List
March 30, 2023
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GBP/USD

Short Position

Take Profit: 1.2200
Stop Loss : 1.2350
Timeline: 1-2 days

Long Position

Buy Stop : 1.2340
Take Profit: 1.2435
Stop Loss : 1.2250

Recently, traders have been taking more risks as they anticipate the banking crisis coming to an end. Bank stock prices were on the rise, which was echoed once more in the key indices as Dow Jones and S&P 500 both climbed by more than 50 basis points. Bond yields were observed to be declining after a significant pullback. The personal consumption expenditure index, due out on Friday, will be the most significant data release for the pair.

On the 4H charts, we could observe the cable pair forming two bearish patterns. First of all, it created a double-top pattern with the upper part at 1.2350 and the neckline hitting 1.2198. Eventually a rising wedge design in black colour also appeared. Yet, it appeared to be hovering at the Woodie pivot point’s first resistance. So, there is a good chance that the GBP/USD pair will move towards a downtrend again. We did observe a decline in the morning as US bond yields fell and the stock market rose along with strong USD.

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