The GBP/USD pair is currently operating within an ascending channel, trading around 1.2630. Immediate resistance is noted at 1.2690, with primary support identified at the nine-day EMA of 1.2597.
The pair shows a bullish trend, supported by the 14-day Relative Strength Index (RSI) above the 50 mark. This suggests a robust short-term price momentum, as the pair stays above the nine- and 14-day Exponential Moving Averages (EMAs).
If the pair surpasses 1.2811, it could reach the upper boundary of the channel at 1.2960. Conversely, a drop below the nine-day EMA may indicate a weakness, bringing the price closer to 1.2490.
The British Pound has also demonstrated strength against other major currencies, particularly the Japanese Yen.
From what we see, the pound is maintaining an upward trend, with price action hinting at sustained momentum. The fact that it remains within this ascending range tells us that buyers are still in control, at least for now. The resistance at 1.2690 is a key level to watch, as breaking beyond this would suggest confidence among traders, potentially setting the stage for a push towards 1.2811. If that hurdle is cleared, there’s little in the way before the upper boundary near 1.2960.
Looking at the nine-day EMA at 1.2597, this is the first test of the trend’s strength. Holding above this line signals resilience, while dipping beneath it would be an early warning of fading momentum. Should that happen, attention would need to shift towards 1.2490, which stands as the next possible stopping point.
Technical indicators are still giving the edge to the buyers. The RSI sitting above 50 points to a continued bullish bias, reinforcing what we observe in price behaviour. The short-term EMAs are acting as a guide, keeping the pair propped up, and offering levels that traders can use to measure shifts in sentiment.
Beyond its performance against the US dollar, sterling has also been proving itself elsewhere, particularly against the yen. This hints at underlying strength that isn’t isolated to a single pairing, suggesting broader support in favour of the pound.
Over the coming weeks, holding above these EMAs should keep traders leaning towards the buy side, but any move below the nine-day EMA could force a reassessment. Watching for a test of resistance, alongside how the pair behaves near support markers, will be key in determining whether this momentum holds or starts to fade. All of this points to a market where traders should stay agile and ready to adjust based on where price action takes us next.
