GBP/USD Price Analysis: Remains subdued above 1.2700

• GBP/USD edges up, with buyers eyeing a clear break of the weekly high.
• Key resistance levels lie at 1.2803, and YTD high at 1.2893.
• The major can turn bearish below, falling below 1.2681.

The Pound Sterling registered minuscule gains versus the US Dollar in early trading during the North American session. Investors’ sentiment is upbeat as most US equity indices are rising, US Treasury bond yields are falling, and the Greenback was virtually unchanged against a basket of its peers. Therefore, the GBP/USD trades at 1.2719, up 0.11%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD pair shows a clear upward bias in the near term. While it has yet to print a new weekly high above Monday’s 1.2725, this could potentially pave the way for significant further gains.

Momentum is in favor of the buyers, as depicted by the Relative Strength Index (RSI), which is in bullish territory, though it’s about to turn overbought.

If GBP/USD buyers reclaim 1.2725, that could exacerbate a rally to the next pivot high at 1.2803, the March 21 high. Once surpassed, the next resistance would be the year-to-date (YTD) high at 1.2893.

Conversely, the pair could aim downwards if it registers a daily close below May 20’s low of 1.2681. That can expose the 100-day moving average (DMA) at 1.2634, followed by the 50-DMA at 1.2583.

GBP/USD Price Action – Daily Chart