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GBP/USD Price Analysis: Bulls have the upper end, could aim to reclaim 1.3500 mark

  • GBP/USD edged higher for the fourth straight day on Friday.
  • The set-up remains tilted firmly in favour of bullish traders.
  • The stage seems set for a move to reclaim the 1.3500 mark.

The GBP/USD pair attracted some dip-buying near the 1.3390-85 region on Friday and turned positive for the fourth successive day. The pair held on to its modest intraday gains through the mid-European session and was last seen trading near the daily top, around the 1.3415-20 region.

From a technical perspective, the overnight sustained move beyond the 1.3370-75 horizontal resistance, or the post-BoE swing high was seen as a fresh trigger for bullish traders. This, in turn, supports prospects for an extension of this week's solid bounce from the vicinity of the YTD low.

The constructive outlook is reinforced by the fact that technical indicators on the daily chart have just started moving into the positive territory. A subsequent move beyond the monthly top, around the 1.3435-40 region will reaffirm the bullish bias and pave the way for additional gains.

The GBP/USD pair could then accelerate the appreciating move and aim to reclaim the key 1.3500 psychological mark. The momentum could get extended and push spot prices beyond an intermediate hurdle near 1.3515, towards testing the next relevant barrier near the 1.3560-65 region.

On the flip side, any meaningful slide below the 1.3375-70 resistance breakpoint could now be seen as a buying opportunity and remain limited near the 1.3335 area. Some follow-through selling below the 1.3300 mark might negate the positive bias and expose the 1.3265-60 support.

GBP/USD 4-hour chart

Technical levels to watch

 

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