GBP/USD long-term technical analysis

The Fed is under the spotlight as Jerome Powell move into the office. The market reaction this month mostly controlled by news from the U.S. The Fed in the minutes of meeting suggest hawkish outlook with four rate-hike scheduled this year. Though, on the other hand, The Fed drop cold water as they submit no rate-hike in the report to the Congress.

GBP/USD blasted the top in January trading month and settle above 1.4000 for the first time since Brexit vote. The pair has more room upside as U.S dollar weakness prevail. There is no change to the outlook yet, and the first possible long-term outlook change might come from Jerome Powell first FOMC meeting.

New Month

Monthly chart

GBP/USD closed the month January with significant advantages above 1.4000 and reached 1.4325 before turning back this month. In February, the bear returned and tested 1.4000 broken resistance. It looks like the bull manages to hold the level, but the month has not finished yet, and it is possible for the bear to make a sharp downward push.

Traders could look for long position when the pair hit red trendline.

Weekly chart

GBP/USD made subdued reaction after the pair blast through 1.4000. On the weekly chart, we could find the pair traded between 1.3835 – 1.4000 and the range get smaller. Base on the trend, there is high potential GBP/USD will continue break upside.

Daily chart

The situation on the daily chart of GBP/USD mostly sideways as the pair move inside triangle consolidation. There is nothing to do except trading the range until breakout happens.

Trade plan

The short-term trend of GBP/USD is sideways, and traders could use smaller time-frame to take a position. The daily chart triangle pattern is the one traders need to watch.