On the one-hour chart, the GBP/USD pair continues moving in a bullish trend from the support levels of 1.1998 and 1.1914. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
As the price is still above the moving average (100), immediate support is seen at 1.1998, which coincides with a key ratio (23.6% of Fibonacci).
Moreover, the RSI starts signaling an upward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below 1.1998.
Consequently, the first support is set at the level of 1.1998. So, the market is likely to show signs of a bullish trend around the zone of 1.1998.
Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.1998. Thereupon, the price area of 1.1998 remains a significant support zone.
Therefore, a possibility that the GBP/USD pair will haveupside momentum is rather convincing and the structure of a raise does not look corrective.
In other words, buy orders are recommended above the key ratio (1.1998) with the first target at the level of 1.2050. Furthermore, if the trend is able to breakout through the first resistance level of 1.2050.
We should see the pair climbing towards the double top (1.2092) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.1914.
