GBP/USD: Pennant Builds as Price Clings to 1.337 Support

In today’s technical setup, we’re watching Cable (GBP/USD) closely as it tests a major long-term support zone at 1.337, marked clearly in yellow on the chart. This level has held through multiple tests and continues to act as a critical battleground between bulls and bears.

But the pressure is mounting.

Price action has recently formed a pennant formation, outlined with black trendlines. And that’s where things get tricky for the bulls — because pennants are typically trend continuation patterns, and here, the dominant trend is bearish, as shown by the green descending trendline.

So what does this mean for traders?

• A break below the lower boundary of the pennant would be a bearish signal, confirming continuation and likely triggering another test of the 1.337 horizontal support.

• A breakout below 1.337 would escalate the move into a full long-term sell signal, opening room for deeper downside.

On the flip side, a bullish breakout above the pennant and above the green downtrend line would invalidate the bearish structure. That would be a less likely scenario, but if it happens, it would signal a technical reversal and bring in a long-term buy signal.

Right now, the structure favors the sellers, but the breakout direction will decide everything. The battle at 1.337 is not over yet — but momentum is shifting.

Source: https://www.axiory.com/analytics/technical-analysis/gbp-usd-pennant-builds-as-price-clings-to-1-337-su