Overview :
On one-hour chart, the GBP/USD pair is continuing in a bullish market from the supports of 1.3384 and 1.3449. Also, it should be noted that the current price is in a bullish channel.
The 100-day moving average (red line) has been a key level in keeping the upside momentum going from a technical point of view while dollar weakness remains the key driver pushing the pair higher from a fundamental perspective.
Equally important, the RSI is still signaling that the trend is upward as it is still strong above the moving average (100) since yesterday. Immediate support is seen at 1.3384 which coincides with a golden ratio (61.8% of Fibonacci).
Consequently, the major support sets at the level of 1.3384. Minor support has already set at 1.3449. So, the market is likely to show signs of a bullish trend around the spot of 1.3449.
Hence, major support is seen at the level of 1.3384 because the trend is still showing strength above it.
Accordingly, the pair is still in the uptrend from the area of 1.3384 and 1.3449. The GBP/USD pair is trading in a bullish trend from the last support line of 1.3449 towards the first resistance level at 1.3538 in order to test it.
This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 1.3449 and further to the level of 1.3538.
The level of 1.3538 will act as first resistance and the double top is already set at the point of 1.3538.
Also, it should be noted major resistance is seen at 1.3605, while immediate resistance is found at 1.3538. Then, we may anticipate potential testing of 1.3538 to take place soon.
Moreover, if the pair succeeds in passing through the level of 1.3538, the market will indicate a bullish opportunity above the level of 1.3538. A breakout of that target will move the pair further upwards to 1.3605.
Buy orders are recommended above the area of 1.3449 with the first target at the level of 1.3538; and continue towards 1.3605.
Consequently, there is a possibility that the GBP/USD pair will move upside. The structure of a fall does not look corrective.
At the same time, if a breakout happens at the support levels of 1.3384 and 1.3350, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
