The GBP/USD pair edged lower during Tuesday’s Asian session, trading around 1.2680, after posting gains in the previous session. Despite the pullback, technical indicators suggest the pair remains in an upward trend, with bullish momentum intact.
Technical Outlook: Uptrend Remains in Play
The daily chart analysis highlights a continued bullish bias, as GBP/USD remains within an ascending channel pattern.
The 14-day Relative Strength Index (RSI) stays above 50, signaling sustained bullish momentum.
The pair continues to trade above the nine- and 14-day Exponential Moving Averages (EMAs), reinforcing positive short-term price action.
Key Resistance Levels
If bullish momentum persists, GBP/USD could test immediate resistance at 1.2724, the three-month high recorded on March 3. A decisive breakout could push the pair toward the ascending channel’s upper boundary at 1.2780, with further upside potential toward the psychological resistance of 1.2800.
Support Levels to Watch
On the downside, GBP/USD is expected to find initial support at 1.2639 (nine-day EMA), followed by the 14-day EMA at 1.2613. A break below these levels may weaken short-term momentum, bringing the ascending channel’s lower boundary at 1.2560 into focus.
A decisive break below the channel could signal a shift in sentiment, potentially exposing the pair to the three-month low of 1.2249, last seen on February 3.
Market Sentiment and Outlook
Despite the minor dip, the GBP/USD uptrend remains intact as long as the pair holds above key support levels. Traders will closely monitor upcoming US economic data and Federal Reserve commentary for further direction.
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