GBP/USD Breaks Above Weekly Range to Eye Monthly High
GBP/USD appears to be on track to test the monthly high (1.2576) as it breaks out of the range bound price action from earlier this week.
Share this:
British Pound Outlook: GBP/USD
GBP/USD appears to be on track to test the monthly high (1.2576) as it breaks out of the range bound price action from earlier this week, and the exchange rate may no longer track the negative slope in the 50-Day SMA (1.2533) should it trade above the moving average for the first time since October.
GBP/USD Breaks Above Weekly Range to Eye Monthly High
GBP/USD starts to carve a series of higher highs and lows as it trades to a fresh weekly high (1.2502), and with the recent advance in the exchange rate pushing the Relative Strength Index (RSI) to its highest level since October.
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, a further advance in GBP/USD may push the RSI towards overbought territory, but lack of momentum to test the monthly high (1.2576) may keep the exchange rate below the 50-Day SMA (1.2533).
GBP/USD Price Chart –Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBPUSD extends the advance from the start of the week to trade back above the 1.2390 (38.2% Fibonacci extension) to 1.2446 (May low) zone, with a breach above the monthly high (1.2576) bringing the 1.2710 (23.6% Fibonacci extension) to 1.2760 (61.8% Fibonacci retracement) region on the radar.
- Next area of interest comes in around the December high (1.2812), but GBP/USD may struggle to extend the recent series of higher highs and lows if it fails to test the monthly high (1.2576).
- Lack of momentum to hold above the 1.2390 (38.2% Fibonacci extension) to 1.2446 (May low) zone may push GBP/USD back towards 1.2300 (50% Fibonacci retracement) to 1.2310 (61.8% Fibonacci extension) region, with the next area of interest coming in around the monthly low (1.2100).
Additional Market Outlooks
USD/CAD Remains Vulnerable to Trump Trade Policy Ahead of Fed Meeting
Gold Price Rally Fizzles to Keep RSI Below Overbought Zone
AUD/USD Recovery Stalls Ahead of Monthly High
EUR/USD Pushes Above 50-Day SMA for First Time Since October
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
DAX forecast: AI optimism offers relief ahead of central bank meetings
The DAX is finding some relief from the recent improvement in risk appetite, with investors becoming less concerned about the sustainability of the AI trade
Gold outlook: XAU/USD holds above key support ahead of FOMC
Gold forecast hangs in the balance as the metal is clinging to $4,000 ahead of the Fed, but higher oil prices and firm yields are making it hard for the metal to turn its rebound into a sustained rally. But can that change soon?
Silver Forecast: Is XAG/USD Finally Finding a Bottom
Silver is showing some encouraging signs after an initially weak start to the session. The metal dropped to a new year-to-date low below the $53 handle, reaching $52.60 before staging a sharp recovery.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.