TraderEye Market View: GBP/USD Technical Outlook – Expanding Triangle in Play, Key E-Leg Developments

Sunday, April 6, 2025

GBP/USD Technical Outlook – Expanding Triangle in Play, Key E-Leg Developments

📌 Attached: A chart illustrating the expanding triangle pattern with a potential bullish Head & Shoulders forming at the bottom of the E-leg.

🔍 Technical Analysis & Market Structure

The GBP/USD pair is currently forming a Broadening Triangle, a volatile chart pattern characterized by widening support and resistance levels. At this stage, we are in Leg E, often the final leg before a decisive breakout.

A potential bullish Head & Shoulders pattern is now emerging on the hourly timeframe, right at the lower edge of Leg E. When such a pattern develops at the low of an expanding structure, it often provides an early indication of an upside breakout.

🌍 Macro Context – Impact of Trump’s Global Tariff Announcement

Recent macroeconomic developments are significantly shaping market sentiment. President Trump's announcement of new global tariffs on all imports to the U.S. triggered a broad selloff across global markets, affecting equities, commodities, and currencies alike.

In such risk-off environments, traders often seek relatively stable or alternative currencies, and the British Pound may benefit from a weaker USD as uncertainty surrounding U.S. trade policy grows. This macro backdrop could complement the technical bullish setup seen on GBP/USD.

🧭 Summary & Trade Outlook

✅ Expanding Triangle – A rare and volatile pattern now approaching a potential breakout after completing Leg E.
✅ Bullish Head & Shoulders – Forming at a technically significant level, signaling early reversal strength.
✅ Macro Influence – USD weakness and rising risk aversion may support a bullish GBP breakout.

📌 Traders should closely monitor confirmation signals for a breakout, especially the behavior around the neckline of the intraday Head & Shoulders, as well as ongoing global economic developments.

🛡️ Extended Legal Disclaimer

This analysis is provided for educational and informational purposes only and does not constitute investment advice, financial guidance, or a recommendation to buy or sell any financial instrument. The author is not a licensed financial advisor, portfolio manager, or certified investment consultant. Trading in forex markets involves significant risk, including the potential loss of capital. Past performance is not indicative of future results. Readers are strongly encouraged to perform their own due diligence or consult with a licensed financial professional before making any investment or trading decisions. The author accepts no liability for financial losses resulting from the use of this content.

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