The GBP/USD pair has been showing bullish momentum, reaching its highest level since July 2023 at 1.3052 on Tuesday. Despite a slight dip in the European session on Wednesday, the pair remains above the key level of 1.3000. The US Dollar has been under pressure, leading to a rise in GBP/USD. With Wall Street’s main indexes trading mixed and falling US Treasury bond yields, the USD has been on the back foot.
GBP/USD is expected to face strong resistance near its one-year high of 1.3045. If the pair manages to move higher, it could trigger steeper bullish action towards the 1.3140 level, a strong barrier from last year. The intraday bias for GBP/USD is currently neutral to negative, with the stochastic losing some steam and the RSI making its way down. However, the pair continues to rebound off the 200-day SMA and the 50.0% Fibonacci retracement level, indicating potential for further gains.
Cable, as the GBP/USD pair is commonly referred to, broke above the psychological level of 1.30 for the first time since mid-July. The rally from the August 8 low of 1.2664 has been steep and uninterrupted, holding for the second week. Daily studies show strong positive momentum and moving averages in a bullish setup, suggesting that bulls are in control for further gains. The July peak at 1.3044 is currently under pressure, and a firm break above this level could open the way towards the 2023 high of 1.3141.
Overall, the GBP/USD pair is showing bullish momentum, with the US Dollar under pressure and GBP/USD reaching its highest levels in years. With strong resistance near the one-year high of 1.3045, the pair has the potential for further gains towards the 1.3140 level. Daily studies indicate strong positive momentum, supporting the bullish outlook for GBP/USD. Traders will be watching closely for any further developments that could impact the pair’s movement in the coming days.
