The expanding triangle on the GBP/USD 30-minute chart presents a compelling setup with multiple potential outcomes. A bullish breakout above 1.33630 could signal a move toward 1.34000 or higher, while a bearish breakdown below 1.32933 might push the pair toward 1.32000 or lower. Alternatively, continued consolidation within the pattern could prolong the current indecision, offering range-trading opportunities.

Understanding the Expanding Triangle Pattern

An expanding triangle, also known as a broadening formation, is a reversal or continuation pattern characterized by higher swing highs and lower swing lows. Unlike the symmetrical or contracting triangles, this pattern widens over time, forming a megaphone-like structure. In the GBP/USD chart, the pattern is clearly defined with a swing high at approximately 1.33630 and a swing low at 1.32933, creating the upper and lower boundaries of the expanding triangle.

The green shaded area highlights the triangle, with the price action oscillating between these boundaries. The upper trendline, marked by the swing high, and the lower trendline, marked by the swing low, diverge as the pattern develops. This volatility suggests increasing market indecision, often driven by economic data releases, geopolitical events, or shifts in monetary policy expectations affecting the British pound and the U.S. dollar.