• A sheer upside after a double bottom formation has advocated a strong reversal.
  • A loud move displayed by the RSI (14) is expressing a shift in the dominance.
  • Pound bulls are offering a bargain buy to investors after a pullback at 20-EMA.

The GBP/USD pair is facing corrective action after a juggernaut rally from Wednesday’s low at 1.2973. The cable has been corrected to a near 20-period Exponential Moving Average (EMA) and is providing an optimal opportunity for the pound investors to enter a firmer reversal.

A double bottom formation on a four-hour scale seems lucrative for the cable bulls. The pair has displayed a sheer upside after retesting March’s lows at around the psychological support of 1.3000. The double bottom chart pattern signifies a bullish reversal amid the absence of high-volume sellers while r-testing the critical bottom. The trendline placed from March 3 high at 1.3418, adjoining the March 23 high at 1.3299 will continue to act as a major barricade.

A loud move in the momentum oscillator, Relative Strength Index (RSI) (14) is indicating a shift from the dominance of bears.

A corrective pullback towards the 20-EMA at 1.3068 looks like an optimal buy for investors. This will drive the asset towards the round level resistance at 1.3100, followed by the 200-EMA at 1.3165.

On the flip side, a drop below the April 8 low at 1.2982 will trigger the greenback bulls, which will send the asset towards the 2 November 2020 low and the round level support at 1.2854 and 1.2800 respectively.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price 1.3069
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3072
 
Trends
Daily SMA20 1.3116
Daily SMA50 1.3271
Daily SMA100 1.3352
Daily SMA200 1.3526
 
Levels
Previous Daily High 1.3147
Previous Daily Low 1.3034
Previous Weekly High 1.3167
Previous Weekly Low 1.2982
Previous Monthly High 1.3438
Previous Monthly Low 1.3
Daily Fibonacci 38.2% 1.3077
Daily Fibonacci 61.8% 1.3104
Daily Pivot Point S1 1.3021
Daily Pivot Point S2 1.2971
Daily Pivot Point S3 1.2908
Daily Pivot Point R1 1.3135
Daily Pivot Point R2 1.3198
Daily Pivot Point R3 1.3248

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

GBP/USD holds above 1.2100 after UK inflation data

GBP/USD holds above 1.2100 after UK inflation data

GBP/USD trades in positive territory above 1.2100 in the early European session on Wednesday as investors assess the latest inflation data from the UK. On a yearly basis, the CPI climbed to 10.1% in July from 9.4% in June, surpassing the market expectation of 9.8%.

GBP/USD News

EUR/USD consolidates gains below 1.0200 ahead of EU GDP, Fed minutes

EUR/USD consolidates gains below 1.0200 ahead of EU GDP, Fed minutes

EUR/USD consolidates the rebound below 1.0200 amid a cautiously optimistic mood. US dollar extends the pullback ahead of Fed minutes while the euro awaits Eurozone GDP. The shared currency remains weighed down by recession fears and gas crises.

EUR/USD News

Gold’s battle with 50 DMA extends ahead of Fed minutes

Gold’s battle with 50 DMA extends ahead of Fed minutes

Gold price rebounds from weekly lows as the USD resumes correction. US Treasury yields are struggling to find demand ahead of the Fed minutes. XAU/USD needs acceptance above 50 DMA to sustain the recovery.  

Gold News

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures