GBP/USD Price Analysis: Prints bullish flag on 1H around monthly top

GBP/USD prints mild intraday losses inside bullish chart pattern.
Successful trading above key HMAs, weekly support line keeps buyers hopeful.
Confirmation of bulls flag exposes buyers towards November’s high.

Anil Panchal FXStreet

GBP/USD retreats to 1.3405, down 0.07% intraday, during early Monday morning in Europe.

Even so, the cable pair stays inside a bull flag while keeping the previous day’s bounce off 50-HMA. Adding to the bullish bias is the weekly ascending trend line, rising 200-HMA and steady RSI.

However, a clear upside break of the flag’s resistance, around 1.3615 by the press time, will be important for the GBP/USD bulls to prosper.

Although the bullish flag confirmation hints at a theoretical target of 1.3665-70, tops marked during November 18 and 09, respectively around 1.3515 and 1.3610, can act as intermediate halts during the expected rise.

Meanwhile, the 50-HMA level near 1.3400 precedes the stated flag’s support line close to 1.3375 to restrict short-term GBP/USD declines.

In a case where the GBP/USD prices drop below 1.3375, an upward sloping support line from December 20 and 200-HMA, around 1.3345 and 1.3300 in that order, will be crucial to watch for clear direction.

GBP/USD: Hourly chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.3408
Today Daily Change	-0.0006
Today Daily Change %	-0.04%
Today daily open	1.3414

Trends
Daily SMA20	1.3277
Daily SMA50	1.345
Daily SMA100	1.3585
Daily SMA200	1.3754

Levels
Previous Daily High	1.3421
Previous Daily Low	1.3384
Previous Weekly High	1.3438
Previous Weekly Low	1.3174
Previous Monthly High	1.3698
Previous Monthly Low	1.3194
Daily Fibonacci 38.2%	1.3398
Daily Fibonacci 61.8%	1.3407
Daily Pivot Point S1	1.3392
Daily Pivot Point S2	1.3369
Daily Pivot Point S3	1.3354
Daily Pivot Point R1	1.3429
Daily Pivot Point R2	1.3444
Daily Pivot Point R3	1.3467

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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