GBP/USD Technical Analysis: Sterling squashes USD bulls expectations as Cable is back to daily highs

  • Pound bulls created a strong bull reversal from the 1.3320 level and are currently challenging the high of the day near the 1.3400 level. 
  • GBP bulls see the consolidation since June 7 as a bull flag, therefore a strong breakout above the upper descending trendline and the 1.3400-1.3425 area could lead to higher prices. 
  • On the other hand, if GBP/USD stays contained below the upper descending trendline and the 1.3400-1.3425 area, the trading range should remains in place for the time being.

GBP/USD 15-minute chart

Spot rate:               1.3377
Relative change:    0.04%     
High:                      1.3390
Low:                       1.3308

Trend:                    Neutral

Resistance 1:        1.3400 figure
Resistance 2:        1.3590 daily 200-period simple moving average
Resistance 3:        1.3700 figure

Support 1:             1.3344, daily 10-period SMA
Support 2:             1.3300 key support
Support 3:             1.3254 June 1 swing low

 

GBP/USD 4-hour chart

 

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