FX.co ★ Technical analysis of GBP/USD for July 29, 2022

The GBP/USD pair's rise from 1.2059 is still in progress and intraday bias stays on the upside for 1.2244 resistance first on the 4-hour chart.

All elements being clearly bullish market, it would be possible for traders to trade only long positions on the GBP/USD pair as long as the price remains well above the price of 1.2059.

The GBP/USD pair will continue rising from the level of 1.2140 in the long term. It should be noted that the support is established at the level of 1.2059 which represents the daily pivot point . The price is likely to form a double bottom in the same time frame.

Accordingly, the GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.2140 . So, buy above the level of 1.2140 with the first target at 1.2244 in order to test the daily resistance 1.

The buyers' bullish objective is set at the level of 1.2244. A bullish break in this resistance would boost the bullish momentum.

The buyers could then target the resistance located at 1.2244. If there is any crossing, the next objective would be the resistance located at 1.2300.

The level of 1.2300 is a good place to take profits. Moreover, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100).

This suggests that the pair will probably go up in coming hours. If the trend is able to break the level of 1.2300, then the market will call for a strong bullish market towards the objective of 1.2340 for next week.

However, beware of bullish excesses that could lead to a possible short-term correction; but this possible correction would not be tradeable. On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the support level of 1.2140, a further decline to 1.2059 can occur. It would indicate a bearish market.