GBPUSD: Buyers Pushing a New Breakout?

February 28, 2023
by Joseph Jeffriess, Market Analyst

GBPUSD Breakout Watch

Hi traders, today we are looking at the GBPUSD as the price has started to show signs of a new breakout.

Looking at the GBPUSD, buyers have continued to hold at the demand and support area with multiple saves. Sellers made their last push yesterday before buyers flooded back, forcing an engulfing type of candle and halting the minor downtrend.

After yesterday’s close, we could see a descending triangle start to develop. These descending triangles can be reversal-type patterns, but as always, we need to see confirmation with a new move out of the pattern first, before we can make the distinction.

Today we have seen a rejected move lower from sellers that have now turned into a test/break of the pattern. This is a good sign and could be the beginning of a new breakout for the GBPUSD. We want to see buyers hold the break and close out of today’s session outside the pattern, and that could indicate that buyers are looking to start a new upwards trend.

If price closes back inside the pattern, that could be seen as a false break, and we would need to see a new move to confirm a break. It’s also a small warning that buyer strength is not as strong as first thought.

If we do see a new upswing on the GBPUSD, 1.2170 and then key resistance are the best possible areas that could test buyer strength.



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