During the North American session on Friday, the GBP/USD pair edged higher by 0.18%, trading at 1.3147 after rebounding from daily lows of 1.3114. This upward movement follows growing expectations that the US Federal Reserve may implement a 50 basis point rate cut at its upcoming meeting.
GBP/USD Price Forecast: Technical Outlook
The GBP/USD pair has resumed its uptrend, with buyers stepping in after the pair reached a weekly low of 1.3001. The momentum remains bullish, as indicated by the Relative Strength Index (RSI), which is rising after previously touching the 50 neutral line. Continued weakness in the US Dollar further supports the potential for additional gains.
A decisive move above the 1.3150 level could open the way for the pair to target the psychological resistance at 1.3200. Beyond this level, the next target would be 1.3239, the high reached on September 6, followed by the year-to-date (YTD) high of 1.3266.
On the downside, if the GBP/USD falls below the 1.3114 daily low, it may test the support level at 1.3100. Further declines could lead to additional support at Thursday’s low of 1.3031.
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