Descending Pennant GBP Potential For Even Lower Movement

Hey Traders


Just doing a quick 20 Chart weekly review and thought this worth sharing.

Cable GBPUSD has a descending triangle formation on the 1W timeframe.

There has been a subtle consolidation on the top side of the formation forming a downward channel.
While price is stalling here I see two possible outcomes where there is a short move.

First:
If price breaks lower from here there is opportunity to reach the previous lows formed within the current pattern formation. With potential for an even lower push to the base of the patter. While the larger formation is completed over the coming weeks and months.

2. If price edges lower without enough pressure we may see a second shoulder forming and the possibility of a median base of support at that level before price later pushes higher to complete the formation.


Until next time


MountianGuide.