The British Pound after trading lower against the US Dollar started to recover. There were a couple of false attempts on the upside as well as on the downside which created a range on the weekly chart. We can trade the GBPUSD pair both ways, as the direction of the next move depends on the price action and break.
There is a triangle pattern forming on the 4-hours chart of the GBPUSD pair. A break on the either side might be a call for a trade (sell or buy depending on the break).
H4– We can enter a buy trade in the GBPUSD if it breaks the highlighted triangle pattern and settles above it.
Target 1: 1.5550
Target 2: 1.5600
Stop Loss: Break and close below the last low created before entering the trade.
H4– We can enter a sell trade in the GBPUSD if it breaks the highlighted triangle pattern and settles below it.
Target 1: 1.5350
Target 2: 1.5280
Stop Loss: Break and close above the last high created before entering the trade.