**GBP/USD Technical Analysis: Fresh Session High Reaffirms Uptrend Potential**
*Adapted from the analysis by Greg Michalowski, InvestingLive.com*
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The GBP/USD pair has recently executed dynamic moves in the forex market, trading to a brand-new session high and outlining what could be the next pivotal moments for both bulls and bears. As traders anxiously watch the Cable, a deeper appreciation of the underlying technicals offers clarity on potential short-term and medium-term trajectories. This analysis follows the original technical breakdown by Greg Michalowski at InvestingLive.com. Let us dissect today’s trading environment, crucial levels in play, and the broader implications for GBP/USD.
## Market Overview: Key Catalysts Shaping GBP/USD
Several influences have fueled the British pound’s momentum against the US dollar:
– **US dollar sentiment:** Coming off mixed economic data releases, the USD found itself under slight selling pressure.
– **UK economic data:** Better-than-expected numbers from the UK, including GDP figures and consistent retail sales, inspired additional optimism for sterling.
– **Interest rate expectations:** Voices from both the Bank of England (BoE) and the Federal Reserve signal a cautious, data-dependent path for future monetary policy moves.
– **Risk appetite:** Global risk sentiment, as seen from equity and commodity markets, has intermittently supported the “risk-on” GBP versus the “safe-haven” USD.
Combined, these elements have underpinned the latest technical outcome: GBP/USD reaching a new session high.
## Intraday Price Action: Deciphering Short-Term Signals
The intraday charting of GBP/USD reveals a decisive breakout:
– **Early session support:** Initial lows for the pair held comfortably above the recent swing supports.
– **Momentum build:** Momentum buyers entered as the price breached minor resistance levels, triggering stops from bearish players.
– **New session high:** This rally propelled GBP/USD beyond its prior range highs.
### Immediate Support and Resistance Levels
Greg Michalowski’s breakdown pinpoints the levels to watch closely:
– **First resistance zone:** The area between 1.2750 and 1.2770 was flagged as key, previously acting as a ceiling.
– **Breakout confirmation:** Once price firmly cleared 1.2770, upward momentum strengthened, reinforcing the new high.
– **Next upside targets:** Technical projections now suggest follow-through potential toward the 1.2800-1.2820 region.
– **Nearest support:** Should bullish momentum fade, the 1.2750-1.2770 zone is expected to act as support. Below there, 1.2720 becomes a pivotal downside marker.
## Daily Technical Structure: Wider Context for GBP/USD
Zooming out to the daily chart, several longer-term features shape trader sentiment:
– **Moving averages:** The 100-day moving average currently sits below spot price, offering a supportive technical floor.
– **Trend lines:** A rising trend line from previous swing lows reinforces bullish structure, evident from repeated bounces.
– **Recent consolidation:** The pair carved a consolidation range between 1.2650 and 1.2770 over several sessions. The latest move signals a possible range expansion.
## Momentum and Oscillator Indicators
Technical studies provide additional insight into market psychology:
– **Relative Strength Index (RSI):** The RSI on the 4-hour and daily charts has moved toward moderately overbought territory, reflecting increased buying power.
– **MACD:** The MACD histogram continues to print green bars, aligning with bullish sentiment. No clear divergence has appeared yet.
– **Volume:** Breakout moves are accompanied by above-average trading volumes, strengthening conviction behind the rally.
## Fundamental Themes Shaping GBP/USD
While the technical picture looks encouraging for bulls, fundamentals continue to shape the broader trend:
– **Bank of England policy:** The BoE’s latest rhetoric remains cautious. Inflation in the UK is receding, yet wage growth and services inflation stay stubborn. Markets
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