Chart of the week: GBP/USD bulls target a grind higher to 1.3850s

Valeria Bednarik, the Chief Analyst at FXStreet, argues that the GBP/USD pair is bullish according to the daily chart:

"Despite the sharp retracement from multi-month highs, the pair is trading around its former yearly highs. Technical indicators in the mentioned chart maintain their upward slopes within overbought levels, while the pair is further above a firmly bullish 20 DMA.  

GBP/USD daily chart

• Support levels: 1.3305 1.3270 1.3225.
• Resistance levels: 1.3365 1.3400 1.3440.

Bullish and bearish technical outlooks

• Bullish: Following a 2.5% rally post the UK elections and a high of 1.3515, the bulls extended the upside above the golden cross and five-yar downside resistance line. Bull can now aim for a close above the 1.35 handle (the December 2017 high is at 1.3550). Bulls will hunt down the high 1.38s where there is a confluence of Fibonacci retracement targets and the February 2016 swing lows. However, between there, we have the September 2017 peak at 1.3658 as well as the February 2018 low at 1.3712. On the next major leg up, bulls will target the double tops of the first half of 2018 around 1.4350. 
• Bearish: While below 1.3351, as being the February and March highs, bears can focus on a break below 1.3305, (S1), 1.3270 late March highs and the 1.3217 January peak. Below here, the 21-day moving average and long term support line are located in the low 1.30s which meet the 21 October highs of 1.3012. The 200-day moving average is found down at 1.2699 (just below the golden cross).