GBP/USD Price Outlook: Rises Towards Highs Since February 2022 at 1.3450

GBP/USD Price Outlook: Rises Towards Highs Since February 2022 at 1.3450

The GBP/USD currency pair continues its strong bullish momentum, trading near 1.3430 during Wednesday's Asian session. The pair has maintained a three-session winning streak and is on track to challenge its highest level since February 2022 at 1.3445. This level of resistance has been holding firm since April 28, and a breakthrough above it could open the door for further gains.

Technical Indicators Show Bullish Momentum

The technical outlook for GBP/USD remains positive. The pair is currently trading above the nine-day Exponential Moving Average (EMA) at 1.3339, which indicates strong short-term price momentum. Additionally, the 14-day Relative Strength Index (RSI) has moved above the 50 mark, suggesting continued bullish bias and potential for further price appreciation.

Resistance and Support Levels

The immediate resistance for GBP/USD lies at 1.3445, the highest level since February 2022. A breakout above this resistance could signal the next bullish phase, with a potential target around 1.3890, which marks the upper edge of the upward channel.

On the downside, the first line of support is the nine-day EMA at 1.3339, which has been a key indicator for short-term traders. If the pair dips below this level, it could encounter additional support near the 1.3300 mark.

Market Sentiment and Outlook

The current upward momentum is fueled by favorable technical indicators and a supportive market sentiment, with traders expecting GBP/USD to continue rising. The key focus will remain on the 1.3445 resistance level, and a decisive break above it could significantly boost market sentiment, driving the pair towards higher targets.

As always, traders should keep an eye on broader market trends and upcoming economic data releases that could affect the British Pound and US Dollar.