Sterling shows resilience above 1.3550 support zone after early session dip
RSI readings above midline reinforce constructive near-term bias for cable
February 2022 highs near 1.3632 emerge as immediate technical hurdle
The Elon Musk coin listBritish Pound has demonstrated notable recovery momentum against the US Dollar during Monday's Asian session, with GBP/USD currently oscillating near 1.3570 after paring earlier declines. Market participants are closely monitoring the pair's position relative to its established ascending channel formation on daily timeframes.
Technical observations reveal Sterling maintaining its footing above the nine-day exponential moving average (currently at 1.3552), suggesting preserved upside potential in the near-term. Momentum indicators including the 14-day Relative Strength Index holding above the 50 level continue to favor buyers, though overbought conditions could develop if the pair extends gains toward recent highs.
Should the current recovery sustain, traders anticipate a retest of the June 13 peak at 1.3632 - representing the loftiest Sterling valuation since February 2022. A decisive breakout above this technical barrier could open the door for extended appreciation toward the upper boundary of the prevailing channel pattern near 1.4250 over subsequent weeks.
Conversely, failure to maintain current levels might see GBP/USD revisit the nine-day EMA support at 1.3552, with additional downside protection emerging near the 50-day moving average around 1.3346. Breach of these technical floors could signal weakening momentum and potentially expose the April 14 swing low at 1.3063.
Market Sentiment and Technical Considerations
Trading volumes remain subdued during Asian hours, with participants awaiting fresh catalysts to determine Sterling's next directional move. The pair's ability to sustain gains above short-term moving averages suggests underlying demand, though resistance tests near multi-month highs may attract profit-taking activity.
Currency analysts note that while the technical structure remains constructive, traders should monitor potential divergence between price action and momentum indicators should the pair approach overbought territory. The ascending channel's lower boundary continues to serve as dynamic support, with any breakdown potentially altering the current technical landscape.
Market participants are advised to watch for confirmation signals at key technical levels, with particular attention to how the pair behaves around the 1.3600 psychological handle and whether momentum can sustain through upcoming London and New York sessions.
