GBP/USD Technical Analysis: Nears resistance of five-year-long falling trendline

GBP/USD has neared resistance of trendline sloping southwards from July 2014 high.
A break higher would bolster the bullish setup and yield a rally to 1.3381.

GBP/USD is better bid at press time and is 30 pips short of 1.3190 – the resistance of the trendline connecting July 2014 high and April 2018 low.

A weekly close higher would bolster the already bullish technical setup, as represented by the bull flag breakout on the weekly chart and an above-50 reading on the 14-week relative strength index.

The flag breakout has created room for a rally to levels above 1.37 (target as per the measured move method). On the way higher, the pair may encounter resistance of the lower high at 1.3381 (created in March 2019).

The bullish case would be invalidated if the pair reverses lower from the trendline resistance and finds acceptance below 1.30.

Weekly chart

Trend: Bullish

Technical levels

Dec 6, 2019

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