FX.co ★ Technical analysis of GBP/USD for May 04, 2022

The GBP/USD pair set above strong support at the level of 1.2527, which coincides with the 23.6% Fibonacci retracement level.

This support has been rejected for three times confirming uptrend veracity. Hence, major support is seen at the level of 1.2527 because the trend is still showing strength above it.

Accordingly, the pair is still in the uptrend from the area of 1.2460 and 1.2527.

The GBP/USD pair is trading in a bullish trend from the last support line of 1.2527 towards the first resistance level at 1.2670 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 1.2670 and further to the level of 1.2750.

The level of 1.2750 will act as second resistance and the double top is already set at the point of 1.2830.

At the same time, if a breakout happens at the support levels of 1.2527 and 1.2410, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.