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).
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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.
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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
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