GBP/USD Analysis: Will 1.3500 Hold as Key Resistance? | Technical Outlook for Sterling

GBP/USD Technical Landscape

The crypto newsBritish pound continues demonstrating upward momentum against the US dollar, currently hovering near the psychologically significant 1.3500 level during Friday's Asian trading session. This marks the second consecutive day of gains for the currency pair, maintaining its position within a well-defined ascending channel visible on daily timeframes.

Key Technical Observations

  • Immediate resistance appears at the nine-day exponential moving average (EMA) positioned at 1.3501
  • Bullish confirmation comes from the 14-day Relative Strength Index holding above the 50 midpoint
  • Primary support rests near the channel's lower boundary around 1.3410

Market technicians note the current price action suggests potential for continued upward movement, though the pair's position below the nine-day EMA indicates some short-term weakness persists. The RSI reading above 50 reinforces the underlying bullish sentiment that has characterized recent trading sessions.

Potential Price Scenarios

Should buyers successfully push through the immediate resistance at 1.3501, attention would shift to the June 13 high of 1.3632 - a level not seen since February 2022. Continued momentum beyond this point could potentially challenge the ascending channel's upper boundary near 1.3750.

Conversely, failure to maintain current levels might see the pair retreat toward the 50-day EMA at 1.3363. A decisive break below this support zone could alter the medium-term technical picture, potentially exposing the May 12 low of 1.3139.

Market Context

The pound's performance comes amid ongoing evaluation of macroeconomic factors affecting both currencies. While technical patterns currently dominate short-term price action, traders remain attentive to fundamental developments that could influence the pair's trajectory.

Daily chart analysis reveals the importance of the established ascending channel, with price respecting these boundaries throughout recent trading activity. The convergence of technical indicators at current levels suggests potential for increased volatility as market participants assess directional bias.