British Pound Forecast: GBP/USD on Cusp of Testing 2024 High
GBP/USD is on the cusp of testing the 2024 high (1.3434) as it breaks out of the range bound price action from the end of last week.
Written by
David Song
Strategist
British Pound Outlook: GBP/USD
GBP/USD is on the cusp of testing the 2024 high (1.3434) as it breaks out of the range bound price action from the end of last week, and a move above 70 in the Relative Strength Index (RSI) is likely to be accompanied by a further advance in the exchange rate like the price action from earlier this year.
British Pound Forecast: GBP/USD on Cusp of Testing 2024 High
GBP/USD climbs to a fresh monthly high (1.3426) after defending last week’s low (1.3234), and the exchange rate may continue to reflect a bullish trend as it appears to be tracking the positive slope in the 50-Day SMA (1.2950).
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With that said, GBP/USD may appreciate over the remainder of the month on the back of US Dollar weakness, but the RSI may show the bullish momentum abating should the oscillator struggle to push into overbought territory.
GBP/USD Price Chart –Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBP/USD extends the rebound from last week to register a fresh yearly high (1.3426), and a move above the 2024 high (1.3434) may push the exchange rate towards the February 2022 high (1.3644).
- Next area of interest comes in around the 2022 high (1.3749), but lack of momentum to close above 1.3410 (78.6% Fibonacci retracement) may push GBP/USD back towards last week’s low (1.3234).
- A break/close below 1.3210 (50% Fibonacci extension) brings the 1.3110 (23.6% Fibonacci retracement) to 1.3150 (23.6% Fibonacci extension) zone back on the radar, with the next area of interest coming in around 1.3010 (61.8% Fibonacci extension).
Additional Market Outlooks
Euro Forecast: EUR/USD Defends Weekly Low Ahead of Euro Area GDP Report
AUD/USD V-Shape Recovery Stalls Ahead of December High
Gold Price Coils Above 50-Day SMA
Canadian Dollar Forecast: USD/CAD Cracks November Low Ahead of Election
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
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