British Pound Short-term Outlook: GBP/USD Bulls Eye 2024 High

British Pound Technical Outlook: GBP/USD Short-Term Trade Levels

• British Pound attempting fourth weekly advance- struggling at resistance near 2024 high
• GBP/USD building divergence threatening exhaustion- U.S. Core PCE, NFPs on tap
• Resistance 1.3414/34, 1.3515 (key), 1.36- Support 1.3313, 1.3207 (key), 1.3111

The British Pound is attempting to mark a fourth consecutive weekly advance with GBP/USD rallying into the uptrend resistance at the 2024 yearly high- bulls on notice. These are the levels that matter on the GBP/USD short-term technical charts.

British Pound Price Chart – GBP/USD Daily

Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView

Technical Outlook: The British Pound has rallied more than 11.1% off the yearly low with GBP/USD trading into uptrend resistance at fresh yearly highs. Building momentum divergence highlights the risk for exhaustion here and while the broader outlook remains constructive, the immediate advance may be vulnerable near-term while below this slope.

British Pound Price Chart – GBP/USD 240min

Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView

Notes: A closer look at Sterling price action shows GBP/USD trading within the confines of an ascending pitchfork extending off the yearly low. Initial support rests with the objective weekly open at 1.3313 and is backed by the April opening-range high (ORH) at 1.3207. A break / close below the median-line would be needed to suggest a more significant high was registered this week / a larger correction is underway. Subsequent support seen at 1.3111 with broader bullish invalidation raised to the 1.30-handle.

A topside breach / close above the upper parallel would expose subsequent topside objectives at the 2019 high at 1.3515 backed by the 1.36-handle and the 2022 high-day close (HDC) at 1.3705- both levels of interest for possible topside exhaustion / price inflection IF reached.

Bottom line: The British Pound rally off the yearly lows has extended into uptrend resistance at the yearly highs on building bearish momentum divergence- mounting risk for exhaustion here. From a trading standpoint, a good zone to reduce portions of long-exposure / raise protective stops- losses should be limited to 1.32 IF price is heading higher on this stretch with a close above the upper parallel needed to fuel the next leg of the advance.

Keep in mind we have U.S. Core Personal Consumption Expenditures on tap tomorrow with Non-Farm Payrolls slated on Friday. Stay nimble into the monthly cross and watch the weekly close for guidance here. Review my latest British Pound Weekly Forecast for a closer look at the longer-term GBP/USD technical trade levels.

GBP/USD Economic Data Releases

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--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on X @MBForex