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

  • 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


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