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GBP/USD technical analysis: Trapped in a bull flag on hourly chart

  • GBP/USD follows a bullish flag pattern on the one hour (H1) chart.
  • 100-HMA offers additional support to the downside.

Observing the GBP/USD pair’s gradual declines since Thursday, a short-term, bullish flag can be witnessed on the hourly chart as the pair trades near 1.2270 heading into the UK open on Monday.

The bullish formation gets confirmed on the upside break of 1.2320, which in turn could theoretically trigger the pair’s run-up beyond 1.2600 mark. However, recent high close to 1.2355 and mid-July top close to 1.2560 could act as a buffer during the surge.

Meanwhile, pair’s downside break of 1.2260 may take rest around 100-hour moving average (HMA) level of 1.2214.

In a case prices decline below 1.2214, 61.8% Fibonacci retracement of the current month upside, at 1.2110 could please bear’s afterward.

GBP/USD hourly chart

Trend: bullish

 

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