GBP/USD Falls Ahead of 2024 High to Threaten Ten-Day Rally

British Pound Outlook: GBP/USD

GBP/USD falls ahead of the 2024 high (1.3434) to threaten the ten-day rally, and the Relative Strength Index (RSI) may indicate a sell-signal should it fall back from overbought territory.

GBP/USD Falls Ahead of 2024 High to Threaten Ten-Day Rally

GBP/USD pulls back from a fresh yearly high (1.3424) after marking a ten-day rally for the first time since 2020, and a move below 70 in the RSI is likely to be accompanied by a further decline in the exchange rate like the price action form earlier this year.

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In turn, GBP/USD may consolidate over the remainder of the week should it snap the recent series of higher highs and lows, but the exchange rate may continue to track the positive slope in the 50-Day SMA (1.2889) as it holds above the moving average.

With that said, the bullish price series may persist should GBP/USD defend the advance from the weekly low (1.3274), and the exchange rate may stage further attempts to test the 2024 high (1.3434) as long as the RSI hold in overbought territory.

GBP/USD Price Chart –Daily

Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView

GBP/USD gives back the advance from the start of the week as it failed to close above 1.3410 (78.6% Fibonacci retracement), and lack of momentum to hold above 1.3310 (100% Fibonacci extension) may push the exchange rate back towards 1.3210 (50% Fibonacci extension).
Next area of interest comes in around 1.3110 (23.6% Fibonacci retracement) to 1.3150 (23.6% Fibonacci extension), but GBP/USD may continue to trade to fresh yearly highs should it extend the recent series of higher highs and lows.
A close above 1.3410 (78.6% Fibonacci retracement) may push GBP/USD towards the 2024 high (1.3434), with the next area of interest coming in around the February 2022 high (1.3644).

Additional Market Outlooks

AUD/USD Extends V-Shape Recovery to Push Above February High

USD/JPY Falls Toward 2024 Low to Push RSI into Oversold Zone

Gold Bullish Price Series Keeps RSI in Overbought Territory

Euro Forecast: EUR/USD Vulnerable to RSI Sell-Signal amid ECB Rate Cut

--- Written by David Song, Senior Strategist

Follow on Twitter at @DavidJSong

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