GBP/USD Price Analysis: The triangle pattern could break to the downside

• GBP/USD is trading 0.30% lower on Thursday and the dollar makes a comeback.
• There is a triangle formation on the 4-hour chart that could break to the downside.

GBP/USD 4-hour chart

Cable has had a tough session on Thursday after look positive earlier on in the session. The price had hit a high of 1.2626 but now settles around 1.2550 around 37 pips lower than the opening price of 1.2587. The price has been making lower highs recently but there was also some support on the downside at the 200 Simple Moving Average. 

Looking at the chart, the key feature is the triangle formation marked in black. The price is now heading to the base of the pattern and any break to the downside could mean the pair is heading to lower levels. On the downside, the next support is at the 1.25 psychological level. If the price is to reach that level the 200 Simple Moving Average will need to be taken out. 

Looking at the indicators, the MACD has turned negative once again. The histogram and the signal lines are under the zero level. The Relative Strength Index has dipped below the 50 area and there is lots of space to reach the oversold area. 

Additional levels