GBPUSD: Triangle Chart Pattern and How to Use It

The daily chart forms a triangle, and we can use this pattern for trading. I can offer you the following ideas about how we can use this pattern for buying and selling.

It will be possible to buy based on reversal signals from the support zone formed by the local uptrend line and SMA50. For this, it will be better to use hourly charts in order to have enough space for the upward movement. Also, it will be possible to buy based on a breakout signal, if the price breaks the upper line of the triangle.

We will sell, if the price breaks the support zone, and the triangle becomes a reversal pattern. Short trades should be opened based on the hourly timeframes as well. It will make risk/reward ratio much better.

For now, the market does not give any good trade opportunities. We have to watch for the price action at the line of the triangle and follow reversal and breakout signals at these zones.