GBP/USD Price Analysis: Bulls are hopeful below 1.3600 for a fresh rally
|- Bulls are required to push GBP/USD above 1.3595 for further upside.
- Flat 50 and 100 EMAs are indicating a reversal after a downside move.
- The RSI (14) in 40.00-60.00 suggests that the asset is still inside the woods.
The GBP/USD pair is juggling in a narrow range of 1.3576-1.3604 after a juggernaut rally from Tuesday's low of 1.3538.
On an intraday scale, the cable is forming a bullish pennant pattern which signals a consolidation phase after a strong upside move and leads to a further upside in the coming trading sessions. Usually, the consolidation phase denotes the initiation of bids by investors who fail to enter in the initial rally or those investors who place bids, which prefer to enter in an auction after the establishment of a bullish bias.
The 50-period and 100-period Exponential Moving Averages (EMA) have turned flat after remaining downward in the previous trading periods. This signals that the asset is not bearish anymore and a reversal is on the cards.
The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which points over consolidation in the cable.
For an upside momentum, bulls are required to push GBP/USD above the highs build in the early Asian session around 1.3595. The asset may find resistances near Tuesday’s high at 1.3604 and Monday’s average traded price at 1.3617 respectively.
On the flip side, bulls could lose their grip if the major slips 50-EMA, which is hovering around 1.3580 and additional losses could be witnessed towards 1.3568, from where the lower trendline is marked and Tuesday’s low of 1.3538 respectively.
GBP/USD 15-minute chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.