GBP/USD is trading in an ascending triangle pattern in the past few days. The uptrend support has been holding since early November yet the recent rejection just under 1.34 creates the barrier level of this pattern.

However, any subsequent move up is more likely to meet resistance near the top barrier of the ascending triangle . The barrier is near the 1.3400 round figure mark region. The pair might then surpass the 1.3400 mark and aim towards testing September daily highs, around the 1.3480 region and then testing key 1.3500 psychological mark.

On the flip side, the formation of the bearish divergence (MACD) suggests that a downside breakout is upcoming. Trading for a bearish move at this time is irrelevant since price is consolidating between 1.339-1.33. If a breakout below 1.33 round figure mark is seen, the trend reversal from MACD bearish divergence is confirmed. This would probably ignite an impulsive downside push back towards 1.320 region mark and will make the pair vulnerable to accelerate the slide further to the 1.311 region.