GBP/USD Price Analysis: A test of 1.3400 still remains on the cards

GBP/USD’s path of least resistance appears to the upside.
The spot charted a bull pennant on the 15-minutes chart.
Bullish crossover and RSI add credence to the advance.

Dhwani Mehta FXStreet

GBP/USD holds the higher ground heading into the European open, with the bulls looking to test the 1.3400 level amid favorable technicals and broad-based US dollar weakness.

From a near-term technical perspective, the spot is consolidating the upside following a breakout from a bull pennant confirmed on the 15-minutes chart. The measured target is aligned at 1.3396.

The upside momentum gained traction after the 50-simple moving average (SMA) on the said timeframe crossed the 100-SMA from below, charting a bullish crossover.

The Relative Strength Index (RSI) has turned south but trades will above the 50.00 level, suggesting that the upside bias still remains intact.

The immediate support at 1.3367 could likely limit the retracement. Although a close below that level could invalidate the bullish formation.

The next support is then seen at the horizontal 200-SMA at 1.3363. The psychological level of 1.3350 could challenge the bears’ commitment.

GBP/USD: 15-minutes chart

GBP/USD: Additional levels

GBP/USD

Overview
Today last price	1.3373
Today Daily Change	0.0017
Today Daily Change %	0.13
Today daily open	1.3356

Trends
Daily SMA20	1.3191
Daily SMA50	1.3034
Daily SMA100	1.3014
Daily SMA200	1.2727

Levels
Previous Daily High	1.3398
Previous Daily Low	1.3322
Previous Weekly High	1.3312
Previous Weekly Low	1.3166
Previous Monthly High	1.3177
Previous Monthly Low	1.282
Daily Fibonacci 38.2%	1.3351
Daily Fibonacci 61.8%	1.3369
Daily Pivot Point S1	1.332
Daily Pivot Point S2	1.3283
Daily Pivot Point S3	1.3244
Daily Pivot Point R1	1.3396
Daily Pivot Point R2	1.3434
Daily Pivot Point R3	1.3471

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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