GBP/USD weekly chart: falling wedge headed to 37-year support?

7 set 2022

The British pound (GBP/USD) hit an intraday low of 1.1406, temporarily breaking below Covid-20 lows and hitting the lowest level in 37 years, before recovering to 1.147 as of this writing.

The GBPUSD weekly chart reveals intriguing long-term patterns:

• The major long-term trend is represented by a falling wedge, with the lower support line set by January 2009's and October 2016's lows and upper resistance line by November 2007's and May 2021's highs.
  
  
• The ultra-ten-year falling wedge contains two lateral ranges (May 2009-June 2016 and July 2016-September 2022), both characterised by a similar 20% width.
  
  
• The long-run falling wedge's direction collides with the all-time low and support level of 1.051 hit in February 1985.
  
  
• If 1.14 defines a new multi-year resistance level and a new 20% side range is established, the next long-term support could be as lows as 0.95.
  
  

Idea written by Piero Cingari, forex and commodity analyst at Capital.com