GBP/USD Price Analysis: Bulls remain in control, fast approaching 1.3000 mark

• GBP/USD continued scaling higher through the early North American session on Wednesday.
• The formation of an ascending channel support prospects for a move beyond the 1.3000 mark.
• Overbought conditions on the daily chart warrant some caution for aggressive bullish traders.

The GBP/USD pair built on its recent bullish break through the very important 200-day SMA and shot to the highest level since March 10 on Wednesday.

Looking at the technical picture, the recent positive momentum over the past three months or so has been along an upward sloping channel, pointing to a well-established bullish trend. This, in turn, supports prospects for a further near-term appreciating move amid the prevalent selling bias around the USD.

However, technical indicators on the daily chart are flashing overbought conditions and warrant some caution for aggressive bulls. Hence, any subsequent move up – though could get extended beyond the 1.3000 psychological mark – is likely to confront a stiff resistance near the top end of the mentioned channel, around the 1.3030 region.

That said, any meaningful pullback might attract some dip-buying near the 1.2900 round-figure mark and should help limit the downside near the 1.2880 region. A convincing breakthrough the said support levels might negate the bullish outlook and drag the pair towards the 1.2815-10 region – the previous swing high set on June 10.

GBP/USD daily chart

Technical levels to watch