GBP/USD Price Analysis: Teasing a symmetrical triangle breakout on 4H chart
- GBP/USD faces a stiff hurdle around 1.3290 on the road to recovery.
- The US dollar retreat keeps the downside cushioned amid the upbeat mood.
- Symmetrical triangle breakout needs confirmation on the four-hour chart.
GBP/USD is advancing towards 1.3300 so far this Tuesday, finding support from a renewed downside in the US dollar across the board amid an improving market mood.
Easing fears over the new Omicron covid variant, as its effects are seen as mild, keep the overall market sentiment buoyed.
Although the further upside appears uncertain amid cautious remarks from the Bank of England (BOE) policymakers, as they contemplate their rate hike plans amid the emergence of the new covid strain.
Also, capping the upside technically is the powerful resistance near the 1.3290-1.3295 price zone. The bearish 50-Simple Moving Average (SMA) aligns at that level.
A four-hourly candlestick closing above that level, GBP/USD will validate a symmetrical triangle breakout.
The 14-day Relative Strength Index (RSI) points higher above the midline, allowing room for more gains.
Buyers will then look to extend the rebound towards the 100-SMA at 1.3360.
GBP/USD: Daily chart
Alternatively, a failure to find acceptance above the aforesaid critical resistance, sellers will return to test the 21-SMA at 1.3269.
The next downside target for GBP bears is then seen at the 1.3250 psychological level. Further south, the triangle support at 1.3232 could be put to test.
GBP/USD: Additional levels to consider