GBP/USD technical analysis: 1.1640 level now key
GBP/USD technical analysis highlights the existence of bullish MACD price divergence on the lower time frames. Daily price closes around the 1.1540 level should decide the direction for sterling this week.
The British pound is attempting to move higher against the US dollar, after the pair found strong technical support from just above the 1.1410 level last week.
GBP to USD analysis shows that the 1.1540 technical area is likely to remain a key pivot for sterling traders this week.
GBP/USD medium-term price trend
Sterling is currently attempting to recover higher, after the British pound suffered one its worst weekly losses on record against the greenback last week.
Bears failed to close the week below the 2016 low, around the 1.1540 level last week, giving sterling bulls a glimmer of hope that a recovery may be forthcoming.
GBP/USD technical analysis shows that the pair could test towards the 1.1950 technical area if bulls can continue to gain traction above the 1.1540 level.
The 1.2280 level remains a valid upside target if GBP/USD bulls can start to gain traction above the 1.1950 level.
Daily price closes below the 1.1540 level would likely increase medium-term selling pressure on sterling, with the 1.1200 level the next key downside target.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair has a strong negative bias over the short term while the price trades below the 1.1935 level.
A bullish double-bottom is currently in place across the lower time frames after the price bounced from the 1.1500 level on Monday.
Furthermore, the four-hour time frame shows that large amounts of bullish MACD price divergence has been created during the recent decline.
Bullish MACD price divergence currently extends towards the 1.2280 and 1.2400 resistance levels.
Gains above the 1.1935 level are currently needed to encourage short-term technical buying towards the 1.2000 level and possibly much higher.
GBP/USD technical summary
GBP to USD analysis shows that the 1.1540 level is likely to remain a key pivotal point for traders this week. The 1.2280 level is seen as a valid bullish target if a recovery does take hold.