GBP/USD Bulls Face Crucial Test at Three-Month Highs
The British Pound (GBP) has experienced a significant rally in recent weeks, gaining nearly 4% from its yearly low as momentum strengthens to its highest reading since January. This upward trend is testing resistance at three-month highs, with bulls now facing a crucial test of their resolve.
According to FOREX.com's analysis, the GBP/USD has broken out of its weekly opening range and is currently trading near the May high of 1.3658. While this marks a significant milestone for the currency pair, it also presents a potential point of exhaustion for buyers.
The medium-term technical structure remains constructive as long as the GBP remains above its yearly open, but the short-term outlook is more cautious. With key support levels at 1.3397 and 1.3302/26, a breach below these marks could threaten a larger pullback within the multi-month uptrend.
Looking ahead to upcoming economic data releases, including UK and US PMI data, traders are advised to remain nimble and watch for directional guidance from weekly closes. The next major technical consideration is eyed with the yearly high-day close/swing high at 1.3848/70.