FX.co ★ GBP/USD 10.22.2019 - Broken rising wedge, bigger downside potential

GBP/USD has been trading downwards. I found the breakout of the well defined rising wedge pattern in the background, which is indication that sellers are in control. Watch for potential selling opportunities on the rallies.

Orange rectangles – Support levels and objectives

Rising purple lines – Broken rising wedge pattern

Falling purple line – Expected path

Broken falling wedge is very important technical point that you should be aware if you plan to buy GBP. My advice is to watch for selling opportunities on the rallies with the targets at 1.2790, 1.270 and 1.2541. Key resistance is set at 1.3000.

Signals of indicators:

MACD – Upside momentum was lost and not MACD turned into negative territory

Bollinger bands In case the Gold declines, support will be provided by the lower boundary of the indicator around 1.2810