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:
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
Gold forecast: XAU/USD struggles as traders eye breakdown
After a three-day recovery, gold prices have fallen in excess of 1.2% so far today, as the metal continues to hover around the $4,000 level. Today’s bearish price action threatens this key level, especially when you consider last week’s 4% sell-off. For now, gold is hanging around this psychological threshold, but it remains to be seen whether it will hold for too long.
Nasdaq 100 forecast: Alphabet results reignite AI concerns
Disappointing results from a couple of major global technology names have put the AI trade back under scrutiny, with Nasdaq 100 futures falling around 1% after giving up the post-FOMC gains seen overnight. For now, our short-term Nasdaq 100 forecast remains more on the cautious side of things than outright bearish. The index remains close to its record highs and continues to find dip buyers. But could that change soon?
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
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.