GBP/USD’s double bottom breakout has put the bulls in a commanding position. The pair may shake out weak hands before rising to 1.25. GBP/USD closed above 1.2310 (Aug. 27 high) on Thursday, confirming a double bottom breakout on the daily chart. A double bottom breakout is a bullish reversal pattern and its reliability is high when it appears following an established downtrend, which is the case here. The breakout has created room for a rally to 1.26 (target as per the measured move method). That said, markets often shake out weak hands by revisiting the former resistance-turned-support before building on the breakout. So, a pullback to levels below 1.2310 (former resistance-turned-support of the neckline) before rising toward the immediate resistance at 1.25. Supporting the bullish case are the above-50 reading on the relative strength index and the positive moving average convergence divergence histogram. The 50-day moving average has also shed the bearish bias (bottoming out). As of writing, the pair is sidelined around 1.2329, representing little change on the day. 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. View All Post By FX Street FXStreet News share Read Next USD/CAD fails to extend bounce off 50-DMA ahead of US, Canadian job numbers FX Street 4 years GBP/USD's double bottom breakout has put the bulls in a commanding position. The pair may shake out weak hands before rising to 1.25. GBP/USD closed above 1.2310 (Aug. 27 high) on Thursday, confirming a double bottom breakout on the daily chart. A double bottom breakout is a bullish reversal pattern and its reliability is high when it appears following an established downtrend, which is the case here. The breakout has created room for a rally to 1.26 (target as per the measured move method). That said, markets often shake out weak hands by revisiting the former resistance-turned-support before building on… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
