Awaiting the Cable’s Cue: Symmetric Triangle’s Climactic Conclusion

In today’s technical analysis, we turn our focus back to a pair that has not graced our analysis for some time: the British Pound to American Dollar, more commonly referred to as the cable. This pair has been weaving an intricate pattern on the charts since November, characterized by a symmetric triangle formation delineated by red lines. As we draw nearer to the apex of this formation, the moment of truth approaches, where traders must make a decisive choice on the direction.

Within the confines of this symmetric triangle, a secondary pattern has emerged—a flag marked by blue lines. This flag concluded with a downward breakout, yet this descent proved to be transient. The decline was promptly halted by a key horizontal support at the 1.262 level, positioned precisely at the midpoint of the symmetric triangle. This level’s resilience is noteworthy, as it suggests a heightened probability of an upward breakout from the triangle, tilting the scales in favor of a bullish outlook.

However, in the dynamic landscape of forex trading, every bullish scenario has its counterpoint. Should the price rebound off the triangle’s upper boundary and subsequently pierce through the green horizontal support, it would signal a shift to bearish momentum, beckoning traders to consider short positions. Such a move would likely persist until the lower extremity of the symmetric triangle is reached, thereby completing the pattern’s narrative arc.

Source: https://www.axiory.com/analytics/technical-analysis/awaiting-the-cable-s-cue-symmetric-triangle-s-clim