The GBP/USD pair has paused its four-day winning streak, trading around 1.3020 during Wednesday’s Asian session. Technical analysis of the daily chart indicates that the pair remains in an upward trend within an ascending channel, signaling a continued bullish outlook.
The Moving Average Convergence Divergence (MACD) indicator further supports this bullish sentiment, with the MACD line positioned above the centerline and showing divergence above the signal line. However, the 14-day Relative Strength Index (RSI) is consolidating just below the 70 level, suggesting the possibility of a short-term correction.
In terms of resistance, GBP/USD is testing its yearly high at 1.3044, last reached on July 17. A decisive break above this level could see the pair moving toward the upper boundary of the ascending channel, around the 1.3100 mark.
On the downside, the pair may find support near the lower boundary of the ascending channel at the 1.2950 level, followed by the nine-day Exponential Moving Average (EMA) at 1.2924. Should the pair break below this level, it could retrace further to the throwback support at 1.2615, a level noted in June.
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