The British Pound (GBP) maintains its strength against the US Dollar (USD), trading near 1.2950 during Friday’s Asian session. Following gains in the previous session, the pair consolidates within an ascending channel, indicating sustained bullish momentum.
Technical Analysis: Bullish Outlook Intact
The daily chart analysis suggests that GBP/USD remains in a strong uptrend. The 14-day Relative Strength Index (RSI) stays above the 50 level, reinforcing positive momentum. Additionally, the pair has rebounded above the nine-day Exponential Moving Average (EMA) at 1.2936, providing further confirmation of bullish sentiment.
The immediate resistance level is near the four-month high of 1.3014, recorded on March 20. A decisive break above this level could accelerate gains, with the pair potentially targeting the upper boundary of the ascending channel at 1.3210.
On the downside, the nine-day EMA serves as the nearest support level. A drop below 1.2936 could lead to further losses toward the lower boundary of the channel at 1.2880. A deeper decline would bring the 50-day EMA at 1.2752 into focus, with a break below this level likely to weaken the medium-term bullish outlook. If selling pressure intensifies, GBP/USD could test the two-month low of 1.2249, last seen on February 3.
Market Outlook
As long as GBP/USD remains above key support levels, the bullish bias stays intact. However, traders will closely watch upcoming US economic data and broader market sentiment for further direction.
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