April as sideways move for GBPUSD

By Tomasz Wisniewski|

Published: April 27 2023, 10:35 GMT+0

April as sideways move for GBPUSD


April can be easily overlooked on the chart of the GBPUSD so far. Since the beginning of the month, the price has been moving pretty much only to the right, avoiding upward or downward moves. Although the trading is pretty much uneventful now, it does not mean that it will continues this way forever. There should be a breakout and it might happen really soon.

Technically, the GBPUSD is currently creating two formations at once. We can see a pennant which is highlighted with the black lines and the head-and-shoulders pattern labeled with blue colours. The first one is promoting an upswing, and the second one is promoting a downswing. What do we get from the two confusing signals then?

The outcome is to just wait and see which way shall be chosen by the price. A breakout of the upper line of the pennant will give us a signal to buy. On the other hand, a breakout of the lower line of the pennant, which is the neckline of the head and shoulders formation at the same time, should give us a signal to sell. Today’s GDP reading from the US can potentially give us a spark for a bigger move – let’s see where this day ends.

Source: https://www.axiory.com/analytics/technical-analysis/april-as-sideways-move-for-gbpusd