Market Analysis: GBP/USD Rebounds Cautiously
GBP/USD is attempting a recovery wave above the 1.3215 resistance.
Important Takeaways for GBP/USD Analysis Today
– The British Pound is attempting a fresh increase above 1.3265.
– There is a contracting triangle forming with resistance at 1.3375 on the hourly chart of GBP/USD.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD, the pair declined after it failed to clear the 1.3600 resistance. As mentioned in the previous analysis, the British Pound even traded below the 1.3350 support against the US Dollar.
Finally, the pair tested the 1.3140 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.3215. The pair even climbed above the 1.3265 level.
The bulls were able to push the pair above the 50% Fib retracement level of the downward move from the 1.3385 swing high to the 1.3141 low.
On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.3375. There is also a contracting triangle forming with resistance at 1.3375 and the 76.4% Fib retracement level of the downward move from the 1.3385 swing high to the 1.3141 low.
The next major resistance is near 1.3385. A close above the 1.3385 resistance zone could open the doors for a move toward 1.3450. Any more gains might send GBP/USD toward 1.3550.
On the downside, there is decent support forming at 1.3265. If there is a downside break below 1.3265, the pair could accelerate lower. The first major support is near the 1.3215 level. The next key support is seen near 1.3140, below which the pair could test 1.3050. Any more losses could lead the pair toward 1.3000.
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