GBP/USD technical analysis: 1.2150 is the level to beat for the bulls
|- GBP/USD created an inverted bullish hammer on Thursday.
- A close above 1.2150 would validate the inverted hammer and confirm a bullish reversal.
GBP/USD is currently trading at 1.2088, having created an inverted hammer candlestick pattern on Thursday.
An inverted hammer shows the bulls are beginning to test the resolve of the bears to keep the pair low and is considered an early sign of bullish reversal, especially if it appears following a notable sell-off, which seems to be the case here.
The inverted hammer is preceded by a sell-off from 1.2784 (June 25 high) to 1.2014 (Aug. 12 low).
A bearish-to-bullish trend change, however, would be confirmed only if the pair closes today above the inverted hammer candle's high of 1.2150.
A bullish close looks likely as the moving average convergence divergence histogram has crossed above zero.
A bullish close, if confirmed, would open the doors to the former support-turned-resistance of 1.2382 (July 17 low).
The bullish case would weaken if the pair drops below the hammer candle's low of 1.2050.
Daily chart
Trend: Bullish above 1.2150
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.