GBP/USD is currently at 1.3570, recovering losses from earlier trading on Monday. The pair might reach 1.3632, the highest level since February 2022, as the 14-day Relative Strength Index remains above 50, indicating a bullish trend. The pair has bounced back above the nine-day Exponential Moving Average (EMA), boosting short-term positive momentum. If it continues to rise, GBP/USD could hit the resistance at 1.3632 and may even approach the upper boundary of the rising channel at 1.4250.

Primary Support Levels

On the downside, key support is found at the nine-day EMA at 1.3552, followed by the 50-day EMA at 1.3346. If these levels are broken, GBP/USD might test the ten-week low of 1.3063 set on April 14. In other currency movements, the British Pound showed mixed performance against major currencies, being strongest against the Canadian Dollar. A heat map shows that GBP gained 0.07% against USD and remained stable against EUR. Caution is advised in the currency markets, and thorough research is recommended before making financial decisions. The recent rise in GBP/USD to the 1.3570 level followed a stronger session in Asia, recovering earlier losses and re-establishing control above short-term averages. This puts the pound in a position to challenge the highs from early 2022, specifically around 1.3632. The Relative Strength Index, consistently above 50, confirms a stronger bullish trend. Price movement has climbed back above the nine-day EMA, a level often used for indicating short-term shifts. While this doesn’t guarantee further gains, it is one of several indicators we use to assess continuation chances. A strong move beyond 1.3632 could bring the upper line of the rising channel into view, near 1.4250. While calling that the next target may be premature, its potential adds structure to a rally that has been gaining consistency since early April.

Support and Resistance Dynamics

Support levels are closely spaced. The first key level is the nine-day EMA around 1.3552, which may hold if current momentum continues. A drop below this could trigger further tests toward the 50-day EMA at 1.3346. Although not far off, this would represent a clearer trend reversal, especially if accompanied by lower liquidity or negative macro news. Should selling increase below that range, the previous low at 1.3063 could come back into play — not the most likely scenario now, but still a consideration. In the broader currency market, the pound had a mixed performance against major pairs. It performed best against the Canadian dollar but remained stable against the euro. This disparity reflects uneven economic data quality across countries and possible shifts in central bank expectations. We’ve seen this before when one market segment reacts strongly, only to later adjust. For those trading derivatives tied to the pound, these reference levels are crucial for short-term strategies. Tests towards the 1.3630-1.3650 range may attract momentum traders, particularly when spot levels and implied volatility diverge in favor of the underlying trend. Nonetheless, respecting the support levels around the nine- and 50-day EMAs can serve as a hedge against this outlook. We’ll be monitoring shifts in positioning data or notable volume changes at key price areas. These can point to activity by larger market players. Even slight changes in sentiment can be observed through pricing movements around these mid-level supports and whether pullbacks create buying interest or hesitation. Macro factors are still important — interest rate expectations will continue to influence market sentiments. However, in the short term, price action is providing clearer signals, especially when viewed against recent consolidations and strength comparisons. Upcoming data will provide more insights, but for now, price leads the way. Create your live VT Markets account and start trading now.

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