Triangle Pattern on GBP/USD Ahead of S&P Global Report

The GBP/USD pair has been on a consistent decline since May 2021.

It is in May 2022 after reaching an all-time low for 2022 that we started seeing some Bullishness on the pair.

Fast forward to today, two important economic news are yet to be released, the S&P Global/CIPS Construction PMI and the Halifax Price Index MoM.

How will these two important economic events change the outlook of the GBP/USD pair?

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What the S&P Global/CIPS Construction PMI is All About and Market Outlook.

The S&P Global / CIPS UK Construction Purchasing Managers’ Index measures month-on-month
changes in total industry activity.

The data shared in the report is very important because it’s used by governments, businesses, and individuals to make some of the most important decisions that may impact the GBP.

If you are a Forex trader interested in the major pairs, keep an eye on the GBP/USD because though it was anticipated that the percentage reading in the report would be higher than the previous; it’s turned out lower.

1. Previous reading – 58.2
2. Forcast – 56.6
3. Actual reading 56.4.

In chatting terms, we expect that the price of the GBP will continue to weaken to the USD and all indicators point to it on both the daily chart, 4-hour chart, and 1-hour chart.

Descending Triangle Pattern on GBP/USD

The descending triangle is usually seen primarily in downtrends and is often thought of as a bearish signal. This is an example of a Descending triangle on GBP/USD 1-hour chart.

Even without mentioning the report, there is a greater conviction that the GBP/USD will continue to decline further.

The chart above shows a nice triangle forming on the GBP/USD pair on a 1-hour chart.

It’s the same on the 1-day chart and the 4-hour chart.

If the price continues to move within the triangle then sooner, it may break the support to a probable GBP/USD low never seen in 2022.

But, don’t take my word for it! Try doing your own analysis too on the pair. Maybe you will get a different perspective. Or maybe you will come to the same analysis as me. If you don’t have a trading account, Sign up with XM Global.