- GBP / USD gains strong positive traction on Monday and rises above the 1.3350 region.
- Intraday momentum pauses briefly near the resistance of the ascending channel.
The GBP / USD pair has extended its intraday gains and has soared to the highest level since September 2, around the 1.3380 region during the first half of the European session. A sustained move above the 1.3310 resistance zone has been seen as a key trigger for intraday investors and appears to have prompted some technical buying in the last hour.
GBP / USD has risen near the upper end of an ascending channel, which should now act as a key point for the next directional move. The bulls may still have to wait for a strong continuation buy above the mentioned barrier before positioning for any further short-term bullish movement.
Meanwhile, the RSI on the 1 hour chart has risen above the 70 level and warrants some caution before opening new aggressive bullish positions. That said, the technical indicators on the daily chart are still far from overbought territory and support prospects for a breakout and bullish extension of recent positive momentum.
Therefore, a further move beyond the round 1.3400 level, en route to the September monthly highs near the 1.3480 region, now looks like a possibility. The bulls could then aim to regain the key psychological level of 1.3500 amid the prevailing selling bias of the USD.
On the other hand, any significant pullback could now be seen as a buying opportunity and remain limited near the break point of resistance, now turned support, at 1.3310. That said, the lack of defense of the aforementioned support could pave the way for a short-term corrective decline and drag the GBP / USD pair towards the horizontal support at 1.3260-55.
GBP / USD daily chart
GBP / USD technical levels
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