GBP/USD Technical Analysis: Bullish flag chart pattern spotted on hourly chart

   “¢   The pair held on to its disappointing UK PMI-led weakness, albeit once again managed to find some support near the 1.3045 horizontal zone.  

   “¢   Meanwhile, the recent corrective slide from 3-1/2 month tops has been along a short-term descending trend-channel formation on the 1-hourly chart.

   “¢   The fact that the pair is holding well below its important intraday moving averages – 50, 100 & 200-hour SMA, support prospects for additional weakness.  

   “¢   Bearish technical indicators on hourly charts add credence to the negative set-up and will be further reaffirmed on a sustained break below the mentioned support.

   “¢   However, given the recent upsurge, the descending trend-channel constitutes towards a bullish continuation flag chart pattern and should attract some dip-buying.

   “¢   Hence, any further downtick towards the trend-channel support, around the key 1.30 psychological mark, might be seen as an opportunity to initiate fresh bullish positions.

GBP/USD 1-hourly chart