GBPUSD - Triangle breakout with possible outcomes
Two scenarios here:
1) Price breaks the triangle to the upside: if this happens, I 'd expect price to break the supply zone where it has used already 3 times and then I would short on the next 1H supply zone between 1.5812 - 1.5839 with 2:1 RR as a minimum target.
2) Price breaks to the downside: I would wait for price to test for the first time the demand zone between 1.5606 - 1.5622. This area has proven to have some demand left because price almost touched it and had a very strong reaction, so I would expect to see a nice bounce from this zone when price reach it.
1) Price breaks the triangle to the upside: if this happens, I 'd expect price to break the supply zone where it has used already 3 times and then I would short on the next 1H supply zone between 1.5812 - 1.5839 with 2:1 RR as a minimum target.
2) Price breaks to the downside: I would wait for price to test for the first time the demand zone between 1.5606 - 1.5622. This area has proven to have some demand left because price almost touched it and had a very strong reaction, so I would expect to see a nice bounce from this zone when price reach it.