GBP/USD Bulls Target Key Resistance at 1.3437; Technical Momentum Favors Further Gains
Technical Analysis:
GBP/USD continued its bullish trajectory on Monday, trading confidently above the rising 10-day moving average (DMA), currently situated at 1.3299, and closing notably firm into the North American session at 1.3417, up 0.8% on the day. The pair’s intraday high at 1.3424 approached the crucial April 21 peak at 1.3423—a seven-month high—underscoring bullish traders’ determination and signaling that the pair remains positioned to challenge critical resistance at 1.3437, the weekly high from March 4, 2022.
Immediate technical resistance at 1.3437 holds the key for GBP/USD bulls. A clear break and daily close above this level would confirm a bullish continuation, potentially triggering accelerated upward momentum toward the upper 30-day Bollinger band at 1.3454, and subsequently toward the psychologically significant barrier at 1.3500. Momentum indicators remain supportive, with the daily RSI trending positively, suggesting additional upside potential. Furthermore, falling U.S. Treasury yields continue to diminish the dollar’s attractiveness, providing a supportive backdrop for further sterling strength.
On the downside, initial support lies at the rising upper 30-day Bollinger band at 1.3408, with firmer support offered by the ascending 10-day moving average at 1.3306. A retracement below this moving average would suggest a potential weakening in short-term bullish momentum, opening risk toward Monday’s session low at 1.3281. However, given the current technical and fundamental landscape, which favors sterling amid easing global trade tensions and favorable gilt-to-Treasury yield spreads, deeper pullbacks are likely to attract fresh buying interest, limiting the extent of corrective declines in the near term.