FX.co ★ Technical analysis on GBPUSD for May 5th, 2023.

Black lines- bearish wedge pattern

In our previous analysis we noted the bearish wedge pattern in GBPUSD and we talked about a potential topping formation. After the better than expected NFP numbers today, Dollar is strengthening across the board and GBPUSD is showing rejection signs. In our previous analysis we mentioned that the risk reward favors opening short positions as price is very close to key resistance. Current price action suggests that more weakness should be expected. Our minimum expectation is for price to move lower towards the lower wedge boundary at 1.2475. If today's candlestick remains with a long upper tail, the chances for a move lower increase. If bulls manage to close near the highs of the day, then we maybe we should be expecting a bullish breakout.