GBP/USD Continues To Trade Within Falling Wedge Pattern

Technical analysis of Forex market

Yesterday, the GBP/USD exchange rate bounced off the upper boundary of the rising wedge pattern.

From a theoretical point of view, it is likely that the currency pair could re-test the lower pattern line located in the 1.3400/1.3600 area in the short run. If the given pattern holds, a reversal north could follow.

Meanwhile, note that the exchange rate could gain support from the 100– and 200-hour SMAs. Thus, a breakout north could occur, and the rate could target the 1.3760/1.3800 area.