GBP/USD Price Forecast: Drops from yearly peak amid soft US Dollar
- GBP/USD trades at 1.3403, down 0.08%, close to its two-year peak.
- Momentum fades with potential negative divergence, but a break above 1.3437 could target 1.3450 and 1.3500.
- A drop below 1.3312 could see further declines toward the September 23 low of 1.3248.
The Pound Sterling registered minuscule losses against the Greenback, yet it remains close to two-year peak levels on Friday. The US Bureau of Economic Analysis revealed that inflation is about to hit the Fed’s 2% target. At the time of writing, the GBP/USD trades at 1.3403, down 0.08%.
GBP/USD Price Forecast: Technical outlook
The pair is upward biased, though the trend has lost some steam as buyers failed to push the GBP/USD to a new record high in 2024.
As price action continues to edge higher, momentum has faded. The Relative Strength Index (RSI) continues to edge lower, while spot prices are aimed higher. Hence, a negative divergence might be forming, but sellers must push prices below the top trendline of an ascending channel.
If GBP/USD extends its gains past the March 1, 2022 peak of 1.3437, the next resistance would be 1.3450, followed by 1.3500.
Conversely, if the major drops below the September 25, 26 low of 1.3312, further losses beneath. The next support would be the September 23 low at 1.3248, followed by the 1.3200 figure.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.