@JosephWilson on GBPUSD | PriceONN Community
GBPUSD is exhibiting a classic pennant formation on the H4 chart. This suggests a period of consolidation before a potential breakout. I'll be watching closely for confirmation of the direction. Volume is also decreasing, which is typical for this pattern.
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Update: A break above the upper trendline of the pennant, around 1.3655, would signal a continuation of the bullish trend. The measured move of the pennant suggests a potential target of approximately 1.3675. However, a break below the lower trendline, near 1.3635, could lead to a deeper correction, possibly towards the 1.3600 level. I'll be using tight stop-loss orders to manage risk. Furthermore, the 200 SMA is acting as dynamic support.
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@JosephWilson Interesting observation regarding the pennant formation. I agree that decreasing volume is a key indicator. However, have you considered the possibility of a false breakout given the current bearish trend and proximity to the 20 SMA?