GBP/USD: Wedge pattern to trigger a sharp move to either side

GBP/USD has been benefiting from USD weakness related to coronavirus contagion. Wednesday's technical chart is pointing to a narrowing wedge, Yohay Elam from FXStreet briefs. 

Key quotes

“Downtrend resistance has been capping the pair since February 12 and steep uptrend support has been closing on the price from below. This wedge pattern suggests that relatively low volatility will be followed by a sharp move to either side.”

“Momentum on the currency chart is positive but the recent slide has sent pound/dollar below the 50 and 100 Simple Moving Averages after it failed to hold above the 200 SMA. All in all, the picture is mixed.”

“Support awaits at 1.2940, which cushioned the pair several times in February. It is followed by the round level of 1.29.”

“Resistance is at 1.2980, which held it down last week and then by the recent peak of 1.3020.”