- GBP/USD is approaching 1.2985, close to the 12-month high of 1.2995, driven by a forceful uptrend.
- Resistance levels were identified at 1.2995-1.3000, 1.3041 (July 19 high) and 1.3126 (July 18 high).
- Support levels to monitor for potential reversals: 1.2901 (July 12 low), 1.2860 (June 12 high), 1.2779 (July 10 low).
Sterling resumes its rally as the North American session begins. The US dollar’s ​​earlier gains have faded, spurred by the shooting at former US President Donald Trump’s rally in Pennsylvania, which prompted a flight to safety. GBP/USD is trading at 1.2985, up 0.24%.
GBP/USD Price Analysis: Technical Outlook
After a three-day rally since Wednesday last week, the 1.3000 level is now within reach, with GBP/USD trading near a 12-month high but below the July 27, 2023 peak of 1.2995.
Momentum remains bullish, albeit moving towards overbought, but given the strength of the uptrend, some traders consider the 80 level to be the most extreme.
Therefore, the next resistance for GBP/USD is 1.2995-1.3000. After breaking this level, the next stop would be the July 19, 2023, high at 1.3041, before testing the July 18, 2023 high at 1.3126. The next one would be last year’s high at 1.3142.
Conversely, if GBP/USD sellers were to step in, they would need to push prices below the July 12 low of 1.2901. In the event of a trend reversal, the next stop would be the June 12 high, which turned into support at 1.2860 before falling back to the July 10 low of 1.2779.
