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  • GBP/USD managed to attract some dip-buying for the second straight day on Thursday.
  • The recent price action constitutes the formation of a symmetrical triangle on hourly charts.
  • Neutral technical indicators warrant caution before placing any aggressive directional bets.

The GBP/USD pair continued with its two-way price moves around 100-hour SMA pivotal point and remained confined well within the previous day’s trading range. The pair was last seen hovering around the 1.3780 region, nearly unchanged for the day.

Looking at the technical picture, the pair has been oscillating between two converging trend-lines since the beginning of this week. This constitutes the formation of a symmetrical triangle on the 1-hour chart, indicating indecision among traders.

The indecisiveness is further reinforced by neutral technical indicators on hourly/daily charts. This, in turn, warrants caution for aggressive traders and makes it prudent to wait for a sustained break through the triangle before placing any directional bets.

Meanwhile, the top boundary of the triangle coincides with the 38.2% Fibonacci level of the 1.4002-1.3671 recent slide to multi-week lows. Some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for additional gains.

The next relevant hurdle is pegged near the 50% Fibo. level, around the 1.3835 region ahead of weekly tops near mid-1.3800s. Above the mentioned barriers, the GBP/USD pair seems all set to accelerate the positive move and aim to reclaim the 1.3900 round-figure.

On the flip side, the 23.6% Fibo. level, around the 1.3745 region, closely followed by the triangle support might protect the immediate downside. A subsequent fall will turn the GBP/USD pair vulnerable to weaken further below the 1.3700 mark and test multi-week lows, around the 1.3670 region.

GBP/USD 1-hour chart

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Technical levels to watch