GBP/USD holds 1.3500, eyes breakout above 1.3584

On May 5, 2026, GBP/USD reclaimed the 1.35000 level and is trading around 1.3530–1.3540 after breaking above a descending trendline. Market participants are watching for a bullish retest around 1.3538–1.3540 and a sustained break above 1.35844.

On the four-hour chart, the pair has broken out of a prior descending channel and the 1.35000 handle has moved from resistance to short-term support. The 100-period simple moving average is above the 200-period moving average on that timeframe. The four-hour Relative Strength Index is near 53, leaving room before overbought readings and a potential test of 1.35844.

At the hourly level, GBP/USD has consolidated just above 1.35300 over the past 24 hours and has repeatedly found support at the 100-period moving average. Price action shows a series of higher lows. A clean hourly candle close above 1.35844 is identified in the analysis as a possible trigger toward the next target near 1.36965.

The 15-minute chart shows a buy-the-dip setup after a spike to the 200-period moving average near 1.35573 and a minor pullback. The short-term RSI divergence indicator recorded a pivot high followed by a bearish tag; the report characterizes that pattern as a pause within the recent advance. Proposed tactical entries include a long on a retracement to about 1.3538–1.3540 with a stop below the 1.35200 swing low and targets at 1.35844 and 1.36200. A higher-conviction breakout approach would use a buy stop around 1.35860 or wait for a retest of 1.35844 as support, with a stop near 1.35500 and a target around 1.36900.

The report notes downside scenarios and risk management: if the 15-minute RSI fails to make higher highs along with price, a deeper correction toward 1.35100 could occur. Traders are monitoring volume and hourly candle closes for confirmation of a sustained break above 1.35844, while 1.35000 is treated as the immediate downside pivot.

The technical commentary and specific entry, stop and target levels were published May 5, 2026 by OANDA MarketPulse analyst Zain Vawda. Price references and chart data in the report are drawn from OANDA top-of-book feeds and TradingView snapshots used in the analysis.