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04.05.202314:17 Forex Analysis & Reviews: Technical analysis on GBPUSD for May 4th, 2023.

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Black lines- wedge pattern

GBPUSD is trading around 1.2583. Short-term trend remains bullish as price continues making higher highs and higher lows. As we mentioned in our previous analysis, GBPUSD has formed an upward sloping wedge pattern. With price trading so close to the upper wedge boundary, the risk reward for bearish positions is high. Resistance is at 1.2605. Downside potential towards 1.2460-1.2480 and the lower wedge boundary provides a nice risk reward opportunity for bears. Trading close to key resistance we risk little relative to the potential gain of a rejection and pull back. In case of a rejection our minimum expectation would be for price to pull back towards the lower wedge boundary.

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