The GBPUSD pair has broken higher from its falling wedge pattern, crossing the 1.39280 mark on Tuesday and retesting the trend line as support yesterday. Resistance can be found at the 1.40000 level. A break above this point would lead to a challenge of the 1.41000 area, with resistance above at 1.41443. The high from the 1st of February comes in at 1.42800, with the high from January at 1.43450.
Support can be found at the trend line with the 50 DMA at 1.38421 and the 1.38354 level below. The 1.37644 level would open the way for a retest of the 1st of March low at 1.37117 and the 100 DMA at 1.36707, with 1.36568 close by. A loss here puts the major support at the rising black trend line at 1.35200. This would signal a takeover by short sellers but they would need to drive price under the 200 DMA at 1.34361. From there, swift moves down can reach for 1.32246 and 1.30586.
The metal has been trading in a sideways consolidation pattern, with the latest manifestation forming a triangle, shown here in black. The danger with a sideways pattern is that, over time, multiple trend lines are formed and broken without ever hitting their target levels and with price generally reverting to the mean. This can be repeated until the price eventually breaks out into a trend. Price had been trading around the 17.000 level but, during February and into March, this seems to have slipped to 16.500. The range has narrowed to a 16.0 handle but a break higher would need to clear the 18.000 level to confirm a move out of the 2017 range, with the 15.600 level as downside support
Near-term resistance is found at the moving averages in a tight band centred on 16.753, with the 16.982 level used recently to cap price. Further resistance is found at 17.232 and 17.470, followed by 17.685. Support is located at the rising black trend line at 16.369, with 16.308 and 16.137 below. Any loss below 15.611 could reach for 14.320 on a breakout.