GBP/USD Climbs to Fresh Monthly High to Approach Channel Resistance
GBP/USD approaches channel resistance as it climbs to a fresh monthly high (1.2709).
Share this:
British Pound Outlook: GBP/USD
GBP/USD approaches channel resistance as it climbs to a fresh monthly high (1.2709), and the exchange rate may further retrace the decline from the December high (1.2812) as it no longer responds to the negative slope in the 50-Day SMA (1.2463).
GBP/USD Climbs to Fresh Monthly High to Approach Channel Resistance
The recent weakness in GBP/USD seems to have been temporary as it extends the rebound from the weekly low (1.2612), and a further advance in the exchange rate may push the Relative Strength Index (RSI) towards overbought territory as the oscillator sits at its highest level since September.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
With that said, GBP/USD may attempt to test the December high (1.2812) as it initiates a series of higher highs and lows, but the exchange rate may consolidate over the remainder of the month should it struggle to push above channel resistance.
GBP/USD Price Chart –Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBP/USD climbs to a fresh monthly high (1.2709) as it trades within an ascending channel, with a break/close above the 1.2710 (23.6% Fibonacci extension) to 1.2760 (61.8% Fibonacci retracement) zone raising the scope for a move towards the December high (1.2812).
- Need a break/close above 1.2820 (38.2% Fibonacci extension) to open up the 1.2900 (23.6% Fibonacci retracement) to 1.2910 (50% Fibonacci extension) area, but GBP/USD may hold below the December high (1.2812) if it struggles to push above channel resistance.
- Failure to hold within the ascending channel may push GBP/USD towards the 1.2390 (38.2% Fibonacci extension) to 1.2446 (May low) zone, with the next area of interest coming in around 1.2300 (50% Fibonacci retracement) to 1.2310 (61.8% Fibonacci extension).
Additional Market Outlooks
Euro Forecast: EUR/USD Continues to Coil Within January Range
Australian Dollar Forecast: AUD/USD Falls from Channel Resistance
USD/JPY Halts Three-Day Selloff to Keep RSI Above Oversold Zone
Canadian Dollar Forecast: USD/CAD Coils Ahead of Trump Tariffs
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold forecast: XAU/USD stabilised after recent falls – for now
Gold has started the first week of the new month trying to recover some ground after another bruising week. Oil prices have taken a sharp drop and that has allowed risk assets to bounce back, which has clearly helped the precious metal too. However, with sentiment remaining bearish towards the metals, and with $4000 level having been taken out last week, the path of least resistance is to the downside for gold.
GBP/USD outlook: Currency Pair of the Week | November 2, 2026
The GBP/USD heads into a crowded week of event risk, with the midterm elections, a Bank of England rate decision and Friday's non-farm payrolls report all capable of moving markets sharply. The greenback remains fundamentally well supported by a hawkish Federal Reserve, but much of that is already priced in, while the renewed sell-off in technology stocks has exposed its vulnerability.
Forex, Gold and Oil Outlook: FX Crosses May Have the Edge
Major forex pairs lack conviction, but FX crosses may offer better opportunities. Matt Simpson examines forex, gold and crude oil markets.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.