GBP/USD Wedge Resistance Tapped | Vantage FX

GBP/USD Wedge Resistance Tapped

April 7, 2017

We spoke yesterday about the GBP/USD wedge that saw price coiling up nicely, and I couldn’t go past featuring the continued price action to end the week.

First up, let’s take a look at what we said yesterday:

Zooming into any of the intraday charts, you can see that price is coiling into a wedge pattern:

GBP/USD 4 Hourly:
160406_gbpusd_4hourly
Click on chart to see a larger view.

Seeing as though price is right smack bang in the middle of the daily range, the direction on which to trade this pattern isn’t clear. Do you view it as a continuation pattern because price has rallied off support and this is merely a pause before a further push higher, or do you take the view that it is simply a turn as we get closer to the top of the range?

Yesterday’s price action goes some way toward answering the question:

GBP/USD 4 Hourly:
160407_gbpusd_4hourly
Click on chart to see a larger view.

As you can see, price shot up, tapped the upper trend line of the wedge and was rejected back down.

Zoom into an even lower time frame chart and you can see just how violent the rejection was.

Does price continue to reject from here and break the lower bound of the wedge? Tweet your scenario to @VantageFX on Twitter.

Take advantage of market opportunity with a Vantage FX live account.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Social

SymbolBidAskSpread

Spread

Experience Transparent and Secure Forex Trading with Vantage FX



  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!
Forex Promotions

Open a live account today to gain exclusive access to our 8 Forex Promotions. 

Find out more.