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.
Written by
David Song
Strategist
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.
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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
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