Search ForexCrunch
  • GBP/USD gained strong positive traction on Monday and surged past mid-1.3300s.
  • The intraday momentum took a brief pause near an ascending channel resistance.

The GBP/USD pair added to its intraday gains and shot to the highest level since September 2, around the 1.3380 region during the first half of the European session. A sustained move beyond the 1.3310 supply zone was seen as a key trigger for intraday traders and seemed to have prompted some technical buying in the past hour or so.

The GBP/USD pair was last seen hovering near the top end of an upward sloping channel, which should now act as a key pivotal point for the next leg of a directional move. Bulls might still need to wait for some strong follow-through buying beyond the mentioned barrier before positioning for any further near-term appreciating move.

Meanwhile, RSI on hourly charts has just moved beyond the 70.00 mark and warrants some caution before placing aggressive bullish bets. That said, technical indicators on the daily chart are still far from being in the overbought territory and support prospects for an eventual bullish breakout/extension of the recent positive momentum.

Hence, a subsequent move beyond the 1.3400 round-figure mark, en-route September monthly swing highs near the 1.3480 region, now looks a distinct possibility. Bulls might then aim to reclaim the key 1.3500 psychological mark amid the prevalent USD selling bias.

On the flip side, any meaningful pullback might now be seen as a buying opportunity and remain limited near the 1.3310 resistance breakpoint. That said, failure to defend the mentioned support could pave the way for some near-term corrective slide and drag the GBP/USD pair back towards the 1.3260-55 horizontal support.

GBP/USD daily chart

fxsoriginal

Technical levels to watch

 

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.