Technical Trading Tips and Techniques by 
Price action on GBP/USD has continued progressing sideways within the converging triangle consolidation that has been in place since the beginning of the month. This continued consolidating price action occurs within the context of a steep uptrend (extending from the late April lows) that has not been broken as of yet. For more technical analysis on this currency pair, please click here for Monday’s (6/29/2009) Chart of the Day.
- James Chen, CTA, CMT
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Hey James, price on the GBP/USD has broken above the triangle, and above the 1.6660 level you mention on this chart. However, price has quickly retraced back to 1.6451 (as of this writing). Are you considering this a breakout?
Thanks,
GB
Hi Gregory,
Thanks for your question! GBP/USD is still consolidating as of this writing. That breakout above 1.6660 was a false, or at best, premature, breakout. On the daily chart, the close of that bar was well within the triangle. At this point, there hasn’t really been a triangle break, but we are closely approaching the apex. If price continues to consolidate sideways as it has been, this triangle will likely be invalidated altogether. Hope that helps. Thanks, Gregory!
- James Chen
Yeah it really does help, thanks James.
Looks like it’s going to break bottom of triangle now just to spite me.
GB