GBP/USD Price Analysis: Pound bulls get strengthens on double-bottom formation at around 1.3000

Pound bulls are witnessing wider ticks after exploding the consolidation formed in a 1.2982-1.3058 range.
A double-bottom formation has driven the cable strongly to near 1.3120.
The loud move on the RSI (14) is indicating a bullish bias ahead.

Sagar Dua FXStreet

The GBP/USD pair is experiencing a strong upside after the successful re-test of its critical bottom at 1.3000. The cable has witnessed a vertical positive move after breaking out of the consolidation formed in a range of 1.2982-1.3058.

On a four-hour scale, GBP/USD has bounced sharply after a double bottom formation. Usually, the mentioned chart pattern indicates weak selling pressure on a critical bottom formed earlier. The pair has displayed a sheer upside after retesting March’s lows at around the psychological support of 1.3000. The trendline placed from March 3 high at 1.3418, adjoining the March 23 high at 1.3299 will continue to act as a major barricade.

The 20- and 50-period Exponential Moving Averages (EMAs) at 1.3045 and 1.3062 respectively have turned upside, which signals a firmer reversal.

Meanwhile, the Relative Strength Index (RSI) (14) has displayed a loud move as the momentum oscillator has climbed above 60.00, which indicates a bullish reversal.

A corrective pullback towards the 50-EMA at 1.3062 will be a bargain buy for the market participants. This will send the asset towards Thursday’s high at 1.3123, followed by April’s high at 1.3167.

However, a decisive plunge below Friday’s low at 1.2982 will trigger the greenback bulls, which will drag the asset towards the 2 November 2020 low and the round level support at 1.2854 and 1.2800 respectively.

GBP/USD four-hour chart

GBP/USD

Overview
Today last price	1.3121
Today Daily Change	0.0121
Today Daily Change %	0.93
Today daily open	1.3

Trends
Daily SMA20	1.3121
Daily SMA50	1.3291
Daily SMA100	1.3357
Daily SMA200	1.3533

Levels
Previous Daily High	1.3054
Previous Daily Low	1.2994
Previous Weekly High	1.3167
Previous Weekly Low	1.2982
Previous Monthly High	1.3438
Previous Monthly Low	1.3
Daily Fibonacci 38.2%	1.3017
Daily Fibonacci 61.8%	1.3031
Daily Pivot Point S1	1.2978
Daily Pivot Point S2	1.2956
Daily Pivot Point S3	1.2918
Daily Pivot Point R1	1.3039
Daily Pivot Point R2	1.3077
Daily Pivot Point R3	1.3099

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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