GBP/USD has managed to stay above the key level of 1.3100, indicating that buyers are currently in control of the market sentiment. The Relative Strength Index (RSI) also supports this by showing a bullish momentum, with the next resistance level at 1.3200 being eyed by traders.
Potential Upside
If the pair manages to clear the resistance at 1.3179, it could pave the way for a challenge towards the March 2022 high of 1.3298. Beyond that, the price may have further upside potential towards 1.3437, as the bullish momentum continues to strengthen.
Possible Downside
On the flip side, a pullback below the immediate support level of 1.3150 could lead to a retest of the key support at 1.3100. A breach below this level may open the door to further downside towards 1.3044, with the 50-day moving average (DMA) at 1.2914 acting as a crucial level to watch.
Overall, the GBP/USD pair is currently in a bullish phase, with buyers dominating the market sentiment. However, traders should be cautious of a potential pullback towards key support levels before considering further upside potential. Additionally, keeping an eye on the RSI and other technical indicators can provide valuable insights into the future price movement of the currency pair.
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