GBP/USD technical analysis: 1.3170 level is the gateway for bulls
GBP/USD technical analysis indicates that the GBP/USD pair has a strong bullish bias while price trades above the 1.3170 level. Watch out for more gains now that a bullish breakout from a triangle pattern has taken place.
The British pound surged higher against the US dollar last week, after the Bank of England decided to keep interest rates unchanged.
GBP to USD technical analysis shows that bulls need to maintain price above the 1.3170 resistance level in order to build on the recent recovery.
GBP/USD medium-term price trend
Sterling bulls breathed a sigh of relief last week after the Bank of England decided to keep interest rates the same.
The British pound rallied sharply after the decision, although GBP/USD technical analysis shows that bulls need to keep price above the 1.3170 level this week in order to maintain the upside momentum.
The daily time frame shows that if bulls can hold price above the 1.3170 level it will encourage the notion that the GBP/USD pair may have formed an important technical bottom last month.
Once above the 1.3170 level, the 1.3230 and 1.3370 levels are the main obstacles bulls need to surpass.
It is worth noting that weakness below the 1.2960 level would be disastrous for sterling, and could cause the pair to perform an even deeper pullback towards the 1.2710 level.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair is bullish over the short term while trading above the 1.3070 level.
The four-hour time frame highlights that a neutral triangle pattern still remains the central focus of short-term traders.
Traders should note that numerous failed downside attempts to move under the pattern have failed, and bulls are now holding price above the pattern.
The top of the triangle pattern is currently located around the 1.3130 level. Any moves back towards the triangle pattern could attract GBP/USD dip-buyers buyers this week.
At present, the size of the triangle pattern indicates that the GBP/USD pair could stage a powerful 250 point upside move.
GBP/USD technical summary
GBP to USD analysis highlights that the pair has rallied sharply after the Bank of England rate decision. The 1.3170 level is a key level to watch this week.