- GBP/USD has reclaimed the key psychological level of 1.35000, which now serves as a foundational support zone.
- The analysis presents a cautiously optimistic outlook, with medium-term momentum shifting toward the bulls based on the H4 chart MAs.
- Two potential trade setups are detailed: a Bullish Retest near 1.35380-1.35400 and a Breakout Play above the 1.35844 resistance level.
The British Pound has showcased significant resilience over the past few sessions against the Greenback. After finding solid ground near the psychological 1.3500 handle, cable has embarked on a steady recovery, supported by a confluence of technical indicators across various timeframes.
H4 Chart: The Macro View – Breaking Structural Resistance
On the H4 timeframe, the narrative is one of a trend reversal in the making. For much of the previous month, Cable was locked in a descending channel, characterized by lower highs and lower lows. However, the recent price action shows a definitive break above the descending trendline.
More importantly, the pair has reclaimed the psychological 1.35000 handle, which has transitioned from a stubborn resistance level to a foundational support zone. The 100-period Simple Moving Average (MA) (Blue) is currently trending above the 200-period MA (Black), signaling that the medium-term momentum has shifted in favor of the bulls.
The RSI (Relative Strength Index) on the H4 is hovering around the 53 mark, suggesting there is ample “runway” left before the pair reaches overbought territory, leaving the door open for a test of the 1.35844 resistance level.
GBP/USD Four-Hour Chart, May 5, 2026
Source: TradingView
H1 Chart: Intra-day Consolidation and Moving Average Support
Zooming into the H1 chart, we can see the granularity of the recent rally. The pair has spent the last 24 hours consolidating just above the 1.35300 area.
Looking at price action and GBP/USD is consistently finding support at the 100-MA. Each time the price dips toward the 1.35400 level, buyers have stepped in, creating a series of higher lows.
The immediate hurdle for intra-day bulls is the 1.35844 horizontal resistance. A clean hourly candle close above this level would likely trigger a momentum move toward the next major objective at 1.36965.
GBP/USD One-Hour Chart, May 5, 2026
Source: TradingView
M15 Chart: Scalping Opportunities and Entry Triggers
The M15 chart reveals the immediate tactical environment. We are seeing a classic “buy the dip” configuration. The price recently spiked toward the 200-MA (1.35573) and is currently seeing a minor pullback.
The RSI Divergence indicator at the bottom of the chart shows a “Pivot” high followed by a “Bear” tag, which explains the current cooling off. This is not necessarily a reversal, but rather a healthy breather within an uptrend.
Potential Trade Opportunities (M15):
The Bullish Retest: Traders may look for a long entry if the price retraces to the 1.35365 area (confluence of the M15 100-SMA and previous structural support).
- Potential Entry: 1.35380 – 1.35400
- Stop Loss: Below the 1.35200 swing low.
- Target 1: 1.35844 (Recent High/H4 Resistance)
- Target 2: 1.36200
The Breakout Play: A high-conviction move would be a break and retest of the 1.35844 ceiling. If the price clears this level with strong volume, it confirms the H4 bullish bias.
- Potential Entry: Buy stop at 1.35860 or wait for a retest of 1.35844 as support.
- Stop Loss: 1.35500
- Target: 1.36900
GBP/USD M15 Chart, May 5, 2026
Source: TradingView
The technical outlook for GBP/USD remains cautiously optimistic. As long as price action maintains its position above the 1.35000 psychological floor, the path of least resistance is to the upside.
However, traders should keep a close eye on the RSI on the lower timeframes; if the M15 RSI fails to make a higher high alongside price, a deeper correction toward 1.35100 could be on the cards before the next leg up.
