- GBP / USD is looking to break out of a falling wedge on the daily chart.
- The daily closing on Friday will seek confirmation from the pattern.
- Data from the US NFP could offer a new direction in GBP / USD.
GBP / USD is consolidating recent recovery gains well above the 1.3800 level during Friday’s European session, as the bulls take a breather ahead of the critical release of the US NFP Non-Farm Payrolls.
At the time of writing, GBP / USD is up 0.06% on the day, trading at 1.3836, having failed to resist above the 1.3850 level.
From a short-term technical perspective, the pair is close to breaking a descending wedge on the daily chart.
However, a daily close above the downtrend line resistance at 1.3843 is needed to validate the breakout to the upside. That level is the confluence of the downtrend line and the 21- and 50-day moving averages.
Acceptance above this level could point to a test of the target measured at 1.4407.
Before that, several stones could appear along the way, with the round level of 1.4000 offering stiff resistance.
The RSI is moving flat but just above the midline, which leaves room for further rises.
On the other hand, immediate support is anticipated at 1.3800, below which Thursday’s low of 1.3745 could be retested.
The next crucial support around 1.3650 is the last line of defense for the GBP / USD bulls. At that level, the 100-day SMA coincides with the support of the downtrend line.
GBP / USD daily chart
GBP / USD additional levels
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