- GBP/USD continues its uptrend, rebounding from 1.3114, supported by bullish momentum and a rising RSI.
- A move above 1.3150 could lead to targets of 1.3200 and the September 6 high at 1.3239, with the year-to-date high of 1.3266 as the next resistance.
- On the downside, a drop below 1.3114 would open up support at 1.3100, with additional support at 1.3031.
The GBP/USD is advancing in the North American session, up by more than 0.18%, driven by growing expectations that the US Federal Reserve might cut rates by 50 basis points next week. Currently, the pair is trading at 1.3147 after rebounding from daily lows of 1.3114.
GBP/USD Price Forecast: Technical Outlook
The GBP/USD has resumed its uptrend, with buyers re-entering the market after the pair reached a weekly low of 1.3001. The momentum remains bullish, as indicated by the Relative Strength Index (RSI), which is climbing after having touched the neutral 50 level. This, combined with further weakness in the US Dollar, sets the stage for additional gains.
If GBP/USD moves decisively above 1.3150, it will target the psychological level of 1.3200. Beyond that, the next resistance would be the September 6 high at 1.3239, followed by the year-to-date (YTD) high of 1.3266.
On the downside, if the pair falls below the 1.3114 daily low, it will test the 1.3100 level. Further declines could bring the support level of 1.3031 into play, which was seen on Thursday.
GBP/USD Price Action – Daily Chart
