FX.co ★ Technical analysis on GBPUSD for May 20, 2022.

GBPUSD is trading around 1.2477. Price is below short-term resistance at 1.2515, but has already formed a higher low. This higher low gives hopes to bulls for an upward break out. If resistance is broken, we should then expect GBPUSD to rise towards 1.2670-1.2680.

Green rectangle- short-term support

Red rectangle- resistance

Blue rectangle- target if resistance is broken

GBPUSD is challenging the red resistance. If broken we get a bullish signal and our target will be the blue rectangle. This bullish scenario is valid as long as price is above the green support area. The RSI bullish divergence we identified a few days ago provided the upward bounce we were expecting. Will GBPUSD continue higher? There are increased chances of this happening.