The GBP/USD pair extended its winning streak for a second consecutive session on Monday, trading around 1.3580 during Asian hours. Technical analysis of the daily chart indicates a prevailing bullish bias as the pair advances within an ascending channel pattern.
The pair’s sustained move above the nine-day Exponential Moving Average (EMA) signals strengthening short-term momentum. Complementing this, the 14-day Relative Strength Index (RSI) is climbing toward the 70 mark, reinforcing the bullish outlook. However, a break above 70 could signal an overbought condition, possibly triggering a near-term correction.
Market sentiment remains optimistic after GBP/USD surpassed the resistance at 1.3445, last seen on April 28, marking its highest level since February 2022. The pair now looks set to test the upper boundary of the ascending channel near 1.3960.
On the downside, initial support lies at the nine-day EMA around 1.3428, followed by the lower boundary of the ascending channel at 1.3310. A decisive breach below this support zone could undermine the bullish momentum and exert downward pressure toward the 50-day EMA at 1.3188, then the monthly low of 1.3139 recorded on May 12.
A deeper pullback could weaken medium-term momentum, potentially driving the pair toward its two-month low at 1.2708, reached on April 7.
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