GBP/USD technical analysis: Bullish flag pattern spotted on short-term charts

The pair failed to build on the overnight bounce from the 1.2800 neighbourhood.
Sustained move beyond 200-hour SMA needed for a fresh bullish confirmation.

Haresh Menghani FXStreet

The GBP/USD pair showed some resilience near the 1.2800 handle and staged a goodish intraday bounce on the first day of a new trading week, albeit lacked any strong follow-through. The pair was seen consolidating in a range through the early European session on Tuesday as investors seemed reluctant ahead of yet another UK parliamentary vote on an early election.

Meanwhile, the recent pullback from multi-month tops had been along a descending trend-channel on hourly charts. Given the recent strong move up from the 1.2200 neighbourhood, tested earlier this month, the mentioned channel seemed to constitute towards the formation of a bullish continuation flag chart pattern and support prospects for a further near-term positive move.

However, bulls are likely to wait for a sustained breakthrough the trend-channel resistance, currently near the 1.2870 region, and a subsequent strength beyond 200-hour SMA before positioning for momentum towards the 1.2970-75 intermediate resistance en-route the key 1.30 psychological mark.

On the flip side, any meaningful pullback might continue to find some support near the 1.2800 handle, below which bears are likely to aim towards challenging the trend-channel support, currently near the 1.2750-45 region. Failure to defend the trend-channel support will negate the constructive set-up and pave the way for an extension of the recent corrective slide.

GBP/USD 1-hourly chart

GBP/USD

Overview
Today last price	1.2843
Today Daily Change	-0.0017
Today Daily Change %	-0.13
Today daily open	1.286

Trends
Daily SMA20	1.2622
Daily SMA50	1.2436
Daily SMA100	1.2433
Daily SMA200	1.2715

Levels
Previous Daily High	1.2878
Previous Daily Low	1.2811
Previous Weekly High	1.3013
Previous Weekly Low	1.2787
Previous Monthly High	1.2583
Previous Monthly Low	1.1958
Daily Fibonacci 38.2%	1.2852
Daily Fibonacci 61.8%	1.2836
Daily Pivot Point S1	1.2822
Daily Pivot Point S2	1.2783
Daily Pivot Point S3	1.2755
Daily Pivot Point R1	1.2888
Daily Pivot Point R2	1.2916
Daily Pivot Point R3	1.2955

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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