GBP/USD Price Analysis: Bulls face critical resistance near 1.3720
- GBP/USD consolidates gains after the previous session's strong performance.
- Additional gains for the pair envisioned if price sustained above 1.3720.
- Momentum oscillator holds onto the oversold zone with a neutral stance.
GBP/USD prints minor gains on Tuesday in the early European session. After rallying over 90 pips in the overnight session, from the lows of 1.3612, the pair consolidates gains near the higher levels.
At the time of writing, the GBP/USD pair is trading at 1.3727, up 0.05% for the day.
GBP/USD daily chart
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On the daily chart, GBP/USD tumbled below 1.3600 on Friday, after testing the high of 1.3983 on July 30.
The formation of a big green candlestick in the previous session suggests bulls are in full swing.
If price breaks the session’s high, it could move higher toward the high of August 19 at 1.3758.
The Moving Average Convergence Divergence (MACD) indicator still points at the underlying bullish sentiment. Any uptick in the MACD could bring more buying opportunities.
That said, GBP/USD bulls would like to test the 1.3800 horizontal resistance level followed by the high of August 17 at 1.3852.
Alternatively, if price moves lower, GBP/USD could touch the 1.3685 horizontal support level followed by the low of August 23 at 1.3612.
Next, the market participants will encourage to touch the low of July 20 at 1.3752.
GBP/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
