GBP/USD is on the cusp of testing the 2024 high (1.3434) as it breaks out of the range bound price action from the end of last week.
By : David Song, Strategist
British Pound Outlook: GBP/USD
GBP/USD is on the cusp of testing the 2024 high (1.3434) as it breaks out of the range bound price action from the end of last week, and a move above 70 in the Relative Strength Index (RSI) is likely to be accompanied by a further advance in the exchange rate like the price action from earlier this year.
British Pound Forecast: GBP/USD on Cusp of Testing 2024 High
GBP/USD climbs to a fresh monthly high (1.3426) after defending last week’s low (1.3234), and the exchange rate may continue to reflect a bullish trend as it appears to be tracking the positive slope in the 50-Day SMA (1.2950).
Join David Song for the Weekly Fundamental Market Outlook webinar.
With that said, GBP/USD may appreciate over the remainder of the month on the back of US Dollar weakness, but the RSI may show the bullish momentum abating should the oscillator struggle to push into overbought territory.
GBP/USD Price Chart –Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBP/USD extends the rebound from last week to register a fresh yearly high (1.3426), and a move above the 2024 high (1.3434) may push the exchange rate towards the February 2022 high (1.3644).
- Next area of interest comes in around the 2022 high (1.3749), but lack of momentum to close above 1.3410 (78.6% Fibonacci retracement) may push GBP/USD back towards last week’s low (1.3234).
- A break/close below 1.3210 (50% Fibonacci extension) brings the 1.3110 (23.6% Fibonacci retracement) to 1.3150 (23.6% Fibonacci extension) zone back on the radar, with the next area of interest coming in around 1.3010 (61.8% Fibonacci extension).
Additional Market Outlooks
Euro Forecast: EUR/USD Defends Weekly Low Ahead of Euro Area GDP Report
AUD/USD V-Shape Recovery Stalls Ahead of December High
Gold Price Coils Above 50-Day SMA
Canadian Dollar Forecast: USD/CAD Cracks November Low Ahead of Election
— Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Click the website link below to read our Guide to central banks and interest rates in Q2 2025
https://www.cityindex.com/en-au/market-outlooks-2025/q2-central-banks-outlook/
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.