GBP/USD Price Analysis: Prepped to extend Tuesday's bounce
- GBP/USD's 15-min chart is reporting a flag breakout.
- The hourly chart descending trendline has been breached.
- The pair may rise to 1.3050, extending Tuesday's bounce from support near 1.2950.
GBP/USD looks set to extend Tuesday's bounce from the head-and-shoulders neckline support of 1.2954 as intraday charts are reporting bullish patterns.
To start with, the flag breakout seen on the 15-minute chart indicates the minor pullback from the overnight high of 1.3033 has ended and the rally from 1.2975 has resumed. The breakout has opened the doors for 1.3080 (target as per the measured move method).
Further, the hourly chart is reporting a double bottom breakout and an upside break of the descending trendline.
At press time, the pair is trading near 1.3025. A rise to 1.3050 or higher, if any, could be short-lived, as the 14-day RSI is holding below 50 and the descending (bearish) 5-day average is located at 1.3031.
Trend: Intraday bullish