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GBP/USD Analysis: Why Is the Pair Eyeing 1.3750 Again? | Key Levels to Watch This Week

GBP/USD Technical Outlook: Bullish Momentum Faces Critical Test

The Cardano price prediction in 10 yearsBritish Pound continues demonstrating resilience against the US Dollar, with the GBP/USD pair currently hovering around 1.3730 during early Asian trading hours. This recovery follows a brief pullback from recent highs, as market participants reassess the pair's technical positioning within a well-defined ascending channel.

Key Technical Factors Driving the Pair

  • Channel Dynamics: The price action remains contained within an ascending channel that has guided the pair's movement since early 2025, with the upper boundary currently near 1.3770.
  • Momentum Indicators: The 14-day RSI maintains its position just below the critical 70 threshold, suggesting room for additional upside before reaching overbought territory.
  • Moving Averages: The pair continues trading above both the 9-day and 50-day EMAs, confirming the short-term bullish bias while maintaining healthy distance from longer-term averages.

Potential Price Scenarios

Should bullish momentum persist, immediate resistance appears at the June 26 high of 1.3770 - a level not seen since October 2021. A decisive break above this barrier could open the path toward psychological resistance at 1.3800, though traders should monitor RSI readings for potential overextension signals.

On the flip side, initial support emerges at the 9-day EMA (1.3635), with stronger buying interest likely near the channel's lower boundary around 1.3460. A violation below this zone could signal deeper correction potential toward the 50-day EMA at 1.3426.

Trading Considerations

Market participants should note the increasing volatility as the pair tests multi-year highs. While the technical structure remains constructive, the proximity to historical resistance levels warrants cautious position sizing. The coming sessions may prove crucial in determining whether the Pound can sustain its outperformance against the Greenback or face profit-taking pressure near current levels.

Volume analysis suggests institutional interest remains supportive of the uptrend, though liquidity conditions could change as we approach mid-year portfolio rebalancing periods. Traders might consider waiting for confirmation breaks beyond the 1.3770-1.3635 range before committing to new directional positions.

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