GBP/USD Price Analysis: Rebound from 1.3800 prints bullish flag

GBP/USD holds onto the recovery moves inside a bullish chart pattern.
Firmer RSI, sustained trading beyond 200-SMA favor buyers.
1.3910 becomes a tough nut to crack for the bulls, bears may aim for late July tops.

Anil Panchal FXStreet

GBP/USD bulls take a breather around 1.3870-65, after snapping a three-day uptrend, amid Thursday’s Asian session.

The cable pair dropped to the lowest in 12 days before bouncing off 1.3802 the previous day. In doing so, the quote portrays a bullish flag formation on the four-hour (4H) play.

In addition to the upside favoring chart pattern, the pair’s sustained trading above 200-SMA and steady RSI, modest as well, keep GBP/USD buyers hopeful.

However, a convergence of the flag’s upper line and early July’s top, surrounding 1.3910, becomes a strong resistance for the bulls to cross before aiming the previous month’s high near 1.3985 and the 1.4000 threshold.

Meanwhile, 200-SMA around 1.3830 will initially challenge the pullback moves before the support line of the flag, near 1.3810, stops the GBP/USD sellers.

Even if the pair drops below 1.3810, the 1.3800 round figure and July 22 peak close to the 1.3785, will test the bears.

GBP/USD: Four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.3867
Today Daily Change	0.0027
Today Daily Change %	0.20%
Today daily open	1.384

Trends
Daily SMA20	1.3831
Daily SMA50	1.3907
Daily SMA100	1.3924
Daily SMA200	1.3767

Levels
Previous Daily High	1.3873
Previous Daily Low	1.3828
Previous Weekly High	1.3958
Previous Weekly Low	1.3861
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3845
Daily Fibonacci 61.8%	1.3855
Daily Pivot Point S1	1.3821
Daily Pivot Point S2	1.3802
Daily Pivot Point S3	1.3776
Daily Pivot Point R1	1.3866
Daily Pivot Point R2	1.3892
Daily Pivot Point R3	1.3911

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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