GBP/USD Price Analysis: The bulls have not managed to crack the previous wave high

  • GBP/USD is trading 0.22% higher after another bout of USD weakness on Friday.
  • The bull tried to push higher once again but there was not enough momentum to crack the wave high.

GBP/USD 1-hour chart

GBP/USD is trading higher on the session after another bout of greenback weakness on Friday. The bulls tried once again to push the pair higher but they didn’t manage to break 1.2669. One of the key features on the chart is the channel marked by the trendlines. The top of the channel has been tested and now the price could move lower to test the lower bound. 

The next support level is holding at 1.2580 at the red horizontal line. If the price does manage to break below the zone then it would make a lower high lower low formation, The chart is still in a clear uptrend but for the bulls to take full control again the blue resistance zone at 1.2669 would need to be broken. 

Looking at the indicators, they are both looking pretty bullish. The MACD histogram is green and the signal lines are above the midpoint. The Relative Strength Index has pulled away from the overbought level but remains above 50. This means that if there is a break higher there is still space to move into the overbought zone once again. 

GBP/USD Hourly chart

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