- GBP/USD rises, with eyes on the crucial 1.3000 mark.
- Bullish technical outlook continues; RSI suggests potential for more gains, nearing overbought territory.
- Support levels to watch if rejection happens: 1.2900, 1.2894 (March 8 peak), and 1.2860 (June 12 high).
The Pound Serling rallied sharply against the US Dollar on Friday, up by more than 0.50% even though US inflation data on the producer front was slightly higher than expected, contrary to consumer prices revealed on Thursday. The GBP/USD trades at 1.2981 after bouncing off daily lows of 1.2901.
GBP/USD Price Analysis: Technical outlook
The uptrend on the GBP/USD continues, as it hits a new year-to-date (YTD) high and targets last year’s July 27 high of 1.2995, which is an inch of the 1.3000 figure.
From a momentum standpoint, bulls are in charge. The Relative Strength Index (RSI), despite being at overbought conditions due to aggressive price action, hasn’t reached the most extreme level used by traders, 80. Hence, there is some room to spare, and the 1.3000 would be up for grabs.
A rejection at the 1.3000 mark could pave the way for range-bound trading within the 1.2900-1.3000 range. However, a fall below 1.2900 would lay the path to test the March 8 peak turned support at 1.2894, ahead of June 12’s high at 1.2860.
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