Baxia Markets
July 08, 2021

Descending triangle on GBPUSD

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The price of GBPUSD has been falling since June 10th. The downward trend was not consistent, as we can see, the price has started struggling and fluctuating more recently. Although the price went down sharply at the beginning of the downward trend, it has now calmed down. Does this trend mean that the price will bounce up?



From the movement, we can see that the price is making a descending triangle. The descending triangle is a bearish signal for a breakdown coming soon. So the struggling and fluctuation are temporary. We have another wave in the future.  



The Bollinger Bands seem to be unchanged; the price is not ready to break out soon. Moving average 15(blue) already crossed with moving average 25(purple); this is a bullish signal; the price is ready to go up. However, the Standard Deviation and Average true range are still low; no big movement and no breakouts. The price will break down, and we can see that the breakout will happen later from the recent signals.


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