Ascending Triangle pattern on GBP/USD?

Beginner Questions
1

Hi guys, it’s me again. This time I am checking out the GBP/USD daily chart. I entered the Ichimoku and some trend lines, and this is the result I get from the recent candlesticks:

GBPUSD.jpg700×394 58.7 KB

From the chart, I can see a Ascending Triangle consolidation forming. The 50% Fib is acting as the resistance and the rising trend line as the support. I may deduce that perhaps in the coming few days, there might be a breakout on this pair soon, a upward breakout.

Please voice your views if u have any. Thank u very much for reading this post, posted by a newbie like me :cool:

2

yes there’s an ascending triangle forming up, whether it breaks upward or downward is anybody’s guess.

If you were to trade breakouts from ascending triangles, 2 key qns will be how would you enter and where would your stops be?

3

Well, if u read babypips school, it says that for ascending triangle like this is an indication for a bullish breakout. Reason being, while the resistance does hold, but at the same time bullish traders are slowly overwhelming the bearish traders. Thus the higher lows formed.

Of course, that is in theory. But if u look at the other charts on USD (Check out my post on USD/CAD & another post on EUR/USD by someone), it does shows that the USD is weakening against other currencies. So it might be that a news may be coming, or the other currencies are gaining strength. (Remember cross currency trading?)

4

All am saying is that a break above or below is a 50 50 chance of it happening.

So whatever happens as long as you got your stops in place, you are protected from whatever the outcome.

5

Certainly seems like there is more buyer pressure.

I’d go long with a SL just under the resistance level.