GBP/USD Technical Analysis: Bulls show signs of life on 4-hour chart

• GBP/USD has created a bullish relative strength index (RSI) on the 4-hour chart, indicating a short-term bearish-to-bullish trend change.
• The bullish technical setup, if accompanied by a better-than-expected UK retail sales data, could yield a rally to 1.2829 (4H 50MA).

4-hour chart

Spot Rate: 1.2720

Daily High: 1.2727

Daily Low: 1.2685

Trend: Bullish

Resistance

R1: 1.2733 (5-day moving average)

R2: 1.2745 (100-hour moving average)

R3: 1.2827 (resistance as per the hourly chart)

Support

S1: 1.2685 (support as per the hourly chart)

S2: 1.2662 (Aug. 15 low)

S3: 1.2589 (June 2017 low)