GBP/USD remained between the weekly S1 and the 100-hour SMA on Thursday, thus providing two additional confirmations of a descending triangle. The exchange rate managed to bounce off the short-term down-trend this morning; however, the lack of volatility demonstrates trader indecisiveness towards the pair. As the rate has entered a consolidation phase, it is rather unclear to which direction the Pound is set to go. Bearish technical indicators are signalling to a possible recovery that may lead the Sterling towards the 1.3020/40 area. Alternatively, the aforementioned triangle may be respected, thus setting the British currency down to the weekly S1 at 1.2953. Given the characteristics of this pattern, the weekly and monthly S1s should be breached to the downside.
