GBP/USD Price Analysis: Bulls looking to seize control, move beyond 1.3800 awaited

The GBP/USD pair built on this week's recovery move from the 100-day SMA support near the 1.3670-65 region and edged higher for the third consecutive session on Wednesday. The momentum pushed the pair to one-week tops during the early European session, with bulls now awaiting a move beyond the 1.3800 mark.

Looking at the technical picture, a sustained strength beyond 200-hour SMA, around the 1.3780 region might be seen as a trigger for intraday bullish traders. That said, a modest US dollar rebound from three-week lows – amid a modest pickup in the US Treasury bond yields – might cap gains for the GBP/USD pair.

Meanwhile, the GBP/USD pair was last seen hovering near the 50% Fibonacci level of the 1.3919-1.3669 recent downfall. Some follow-through buying beyond the 1.3800 round-figure will reaffirm the intraday positive outlook and allow bulls to aim towards testing the 61.8% Fibo. level resistance near the 1.3825-30 region.

The constructive set-up is reinforced by the fact that technical indicators on hourly charts have been gaining positive traction and are still far from being in the overbought territory. That said, oscillators on the daily chart are yet to confirm a bullish bias and warrant some caution before placing aggressive bets.

On the flip side, any meaningful pullback now seems to find decent support near the 38.2% Fibo. level, around the 1.3765-60 region. Failure to defend the mentioned support will negate any near-term bullish bias, instead prompt some technical selling and drag the GBP/USD pair to 1.3730-25 area (23.6% Fibo.) en-route the 1.3700 mark.

GBP/USD 1-hour chart

Technical levels to watch