- GBP/USD bulls are regaining control after a breakout of the structure.
- The rally has removed the resistance from the Downtrend Line.
The British pound rose against a weaker dollar on Tuesday as UK inflation remains in the spotlight. This has forced the price higher and put the bulls back in control as the following analysis will illustrate.
1 hour charts
The pair has broken above the former resistance of the downtrend line. Bullish. The bulls could be encouraged to buy again by the deep correction of the bullish momentum.
Price has made an M formation and would be expected to pull back towards the neckline of the pattern. A bullish continuation could occur with the break of the neckline.
The bulls will have to commit to the trailing of the downside momentum from the M formation and trend line resistance as they break through the neckline and double top.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
