GBP/USD technical analysis: Bullish setup valid despite Tuesday’s drop
FXStreet News

GBP/USD technical analysis: Bullish setup valid despite Tuesday’s drop

FX Street
Updated:
  • GBP/USD continues to look north with a flag breakout on the daily chart.  
  • The impending golden crossover could invite stronger buying pressure.  

The path of least resistance for the GBP/USD pair remains to the higher side despite Tuesday’s 0.19% drop.

The daily chart shows the pair is holding the support at 1.2922 – the upper edge of the bull flag, which was breached to the higher side on Friday. Put simply, the flag breakout or the bullish continuation pattern and is accompanied by a falling channel breakout on the 14-day relative strength index.

Further, the 50-day moving average is looking set to cross the 200-day moving average in the next few days. The impending golden cross could bolster the bullish sentiment.

The pair, therefore, remains on track to test and possibly break above the psychological hurdle of 1.30. The bullish case would weaken if the spot finds acceptance under 1.29.  

Daily chart

Trend: Bullish

Technical levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.

WARNING: The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision.  The information on this website is general in nature, so you must consider the information in light of your objectives, financial situation and needs. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site.

© forexcrunch.com All Rights Reserved 2017 – 2023