GBP/USD Potential Trade Setups: Summary
On May 5, 2026, Zain Vawda provided an analysis of the GBP/USD currency pair, highlighting two potential trading opportunities as the pair shows signs of bullish momentum. The British Pound has recently reclaimed the psychological level of 1.35000, which is now acting as a support zone.
Market Overview
The analysis indicates a cautiously optimistic outlook for GBP/USD, with medium-term momentum shifting towards the bulls. The pair has broken out of a descending channel and is now supported by various technical indicators across different timeframes.
Technical Analysis
H4 Chart: Trend Reversal
On the H4 chart, GBP/USD has broken above a descending trendline, indicating a potential trend reversal. The 100-period Simple Moving Average (MA) is above the 200-period MA, suggesting bullish momentum. The Relative Strength Index (RSI) is around 53, indicating room for further upward movement before reaching overbought conditions.
H1 Chart: Intra-day Consolidation
The H1 chart shows that GBP/USD has been consolidating above the 1.35300 level, with consistent support at the 100-MA. The immediate resistance level is at 1.35844, and a close above this level could trigger further upward momentum towards 1.36965.
M15 Chart: Scalping Opportunities
The M15 chart reveals a "buy the dip" scenario, with the price recently pulling back towards the 200-MA. The analysis suggests two potential trade setups:
- Bullish Retest: Look for a long entry if the price retraces to the 1.35365 area.
- Potential Entry: 1.35380 - 1.35400
- Stop Loss: Below 1.35200
- Target 1: 1.35844
- Target 2: 1.36200
- Breakout Play: A break and retest of the 1.35844 level could confirm the bullish bias.
- Potential Entry: Buy stop at 1.35860 or wait for a retest of 1.35844
- Stop Loss: 1.35500
- Target: 1.36900
Conclusion
The technical outlook for GBP/USD remains cautiously optimistic as long as the price stays above the 1.35000 level. Traders are advised to monitor the RSI on lower timeframes for potential corrections before the next upward movement.
For further insights, follow Zain Vawda on Twitter/X.