GBP/USD Price Analysis: Rebound at two-week lows, as double-bottom suggests potential gains

GBP/USD edges north amid slight optimism in the Asian session.
A double bottom chart pattern could pave the way for the GBP/USD towards 1.3000.
Immediate resistance is seen at the 50-day and 20-day EMAs. Breaking these could propel the pair toward the August 10 and July 27 highs. However, a breach below the 100-day EMA could shift momentum toward the 200-day EMA.

Christian Borjon Valencia FXStreet

GBP/USD aims upward for minimal gains of 0.02% as the Asian session begins, but still printing weekly losses following Monday’s session in which the GBP/USD lost 0.10% and reached a two-week low. At the time of writing, the GBP/USD exchanges hands at 1.2682.

GBP/USD Price Analysis: Technical outlook

From a technical perspective, the GBP/USD is neutral-upward biased, as the major dived towards the 100-day Exponential Moving Average (EMA) at 1.2609. Still, buyers entered the market, lifting the spot price to current levels. Notably, the GBP/USD is forming a ‘double bottom’ chart pattern that could pave the way for further gains, but first, the GBP/USD must reclaim resistance technical levels to confirm its validity.

The GBP/USD first resistance would be the 50-day EMA at 1.2733, followed by the 20-day EMA at 1.2761. Once those levels are surpassed, the GBP/USD next stop would be the August 10 high of 1.2819. If buyers push prices above those levels, the July 27 daily high at 1.2995 would be up for grabs.

On the other hand, if GBP/USD tumbled past the 100-day EMA at 1.2609, it would clear the way to challenge 1.2600 and the 200-day EMA at 1.2461.

GBP/USD Price Action – Daily chart

GBP/USD

Overview
Today last price	1.2683
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.2696

Trends
Daily SMA20	1.2825
Daily SMA50	1.2764
Daily SMA100	1.2609
Daily SMA200	1.2351

Levels
Previous Daily High	1.2739
Previous Daily Low	1.2666
Previous Weekly High	1.2819
Previous Weekly Low	1.2666
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2711
Daily Fibonacci 61.8%	1.2694
Daily Pivot Point S1	1.2662
Daily Pivot Point S2	1.2628
Daily Pivot Point S3	1.2589
Daily Pivot Point R1	1.2735
Daily Pivot Point R2	1.2773
Daily Pivot Point R3	1.2807

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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