The pound started to recover against the US dollar last week after the pair suffered a quick drop towards the 1.2250 level.
GBP to USD analysis shows that a bullish ascending triangle pattern is unfolding on the lower time frames.
GBP/USD medium-term price trend
The pound is attempting to rise against the dollar after bears failed to breach the technically important 1.2250 level last week.
Bears also failed to breach the 1.2300 support level yesterday, creating yet another bullish higher weekly low.
GBP/USD technical analysis over the medium term shows that the pair could test towards the 1.2900 level if the 1.2640 level is broken.
The GBP/USD pair’s 200-day moving average is now located at the 1.2640 level. The key moving average has been an important technical benchmark that buyers have so far been unable to overcome.
A bearish symmetrical wedge pattern breakout took place in March this year. It seems that buyers may test back towards the wedge, around the 1.2900 level, if the 200-day moving average is broken.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair has a bullish short-term trading bias while the price trades above 1.2370.
The lower time frames show that an ascending triangle pattern has recently formed. These patterns are typically considered to be bullish.
According to the size of the ascending triangle pattern, the GBP/USD pair could rally towards the 1.2900 level over the short term.
It is noteworthy that if the price moves below the 1.2280 level then a bearish breakout from the triangle pattern will occur, and the GBP/USD pair could fall towards the 1.2000 level.
GBP/USD technical summary
GBP to USD analysis shows that bulls need to move the price above the 1.2640 technical area this week. Buyers could eventually rally the pair towards the 1.2900 resistance area.