Up for 4th day in a row, bulls try to regain 1.3500 level

• GBP / USD advanced for the fourth day in a row on Friday.
• The setup remains firmly tilted in favor of bullish traders.
• The stage looks set for a move to regain the 1.3500 level.

The pair GBP/USD it drew some buying on dips near the 1.3390-85 region on Friday and turned positive for the fourth day in a row. The pair maintained its modest intraday gains during the middle of the European session and was last seen trading near daily highs, around the 1.3415-20 region.

From a technical perspective, the sustained overnight move past the 1.3370-75 horizontal resistance, or the post BOE rally, was seen as a new trigger for bull traders. This, in turn, supports prospects for an extension of this week’s strong rebound from near annual lows.

The constructive outlook is bolstered by the fact that the technical indicators on the daily chart have just started to move into positive territory. A further move past the monthly highs around the 1.3435-40 zone will reaffirm the bullish bias and pave the way for additional gains.

The GBP / USD pair could accelerate the move higher and aim to regain the key psychological level 1.3500. Momentum could widen and push prices past an intermediate hurdle near 1.3515, towards the test of the next relevant barrier near the 1.3560-65 region.

On the other hand, any significant drop below the 1.3375-70 resistance breakpoint could now be seen as a buying opportunity and remain capped near the 1.3335 area. Some follow-up selling below 1.3300 could negate the positive bias and expose the support at 1.3265-60.

GBP / USD 4 hour chart

Technical levels to observe