- GBP/USD could extend gains toward the two-month peak at 1.3599.
- The 14-day Relative Strength Index, hovering around 56, suggests bullish momentum while still avoiding overbought territory.
- The pair is currently retesting the lower edge of its upward channel near 1.3510.
GBP/USD edges slightly higher after a mild pullback in the previous session, trading near 1.3520 during Asian hours on Wednesday. The daily chart suggests a possible bearish reversal setup as the pair sits close to the lower boundary of its ascending channel.
Despite this, the broader bias remains modestly bullish, with price holding above both the nine-day and 50-day EMAs. Their positioning below the current level points to an underlying supportive structure following the recent rally. Meanwhile, the 14-day RSI near 56 reflects constructive momentum without entering overbought territory, leaving scope for additional upside.
On the upside, GBP/USD could retest the key resistance at 1.3599, the two-month high set on April 17. A break above this level would open the path toward the upper channel boundary near 1.3869, the highest level since September 2021, last seen in late January.
On the downside, immediate support lies around the lower channel boundary at 1.3510, closely aligned with the nine-day EMA at 1.3509. A deeper decline would bring the 50-day EMA at 1.3440 into focus. A decisive break below this support cluster could trigger further losses toward 1.3159, the March 31 low, and subsequently 1.3010, a multi-month low recorded in November 2025.
THE ETERNAL SOVEREIGN 