Technical analysis of GBP/USD for August 4, 2016

With the BOE rate announcement just hours away, GBP/USD is in a short-term bullish trend and inside a long-term triangle pattern. Soon we will have either a breakout or a rejection.

Blue lines - bullish short-term channel

GBP/USD is trading inside a bullish short-term channel. Support is at 1,3170 and then at 1.3050. The second one is the most important one. A break below 1.3050 will open the way for 1.25. On the other hand a break above 1.3450 will open the way for 1.36 or even 1.40.

GBP/USD is trading inside a long-term triangle pattern. Volatility is expected to rise and we will soon have a clear trading signal from the price action. Currently price is closer to resistance and a short is more favorable.The material has been provided by InstaForex Company - www.instaforex.com