GBP/USD Price Analysis: Pound bulls get strengthens on double-bottom formation at around 1.3000

• Pound bulls are witnessing wider ticks after exploding the consolidation formed in a 1.2982-1.3058 range.
• A double-bottom formation has driven the cable strongly to near 1.3120.
• The loud move on the RSI (14) is indicating a bullish bias ahead.

Following a successful re-test of its crucial bottom at 1.3000, the pound/dollar pair has seen a significant increase in value. After breaking out of the consolidation that had developed in the band of 1.2982-1.3058, the cable has had a vertical upward increase in price.

On a four-hour time frame, the pound/dollar has risen significantly after the creation of a double bottom. Typically, the chart pattern stated above implies weak selling pressure on a crucial bottom that has already developed. After retesting March's lows at approximately the psychological support level of 1.3000, the pair has seen a significant increase in value. The trendline drawn from the high of March 3 at 1.3418 and connecting it to the high of March 23 at 1.3299 will continue to operate as a significant barrier.

The 20- and 50-period Exponential Moving Averages (EMAs) around 1.3045 and 1.3062, respectively, have shifted to the upside, indicating a more significant reversal in the market's direction.

RSI (14) has also made a significant increase, rising over 60.00, indicating a positive turnaround in the market.

A corrective drop towards the 50-day exponential moving average (EMA) around 1.3062 would be a cheap purchase for market players. This will take the asset towards Thursday's high of 1.3123, which will be followed by April's high of 1.3167, according to the forecast.

In the event of a sustained decline below Friday's low of 1.2982, the greenback bulls will take over, dragged the asset below the 2 November 2020 low and the round level support at 1.2854 and 1.2800, respectively, before reversing course.

GBP/USD four-hour chart