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The GBP/USD pair has reached a new multi-year high, trading above 1.3200. The uptrend remains intact as long as the pair stays above 1.3043. If buyers reclaim 1.3298, it could expose the March 2022 peak at 1.3437. Conversely, a dip below 1.3200 will reveal further support levels, such as 1.3130 (August 22) and the 1.3100 figure.
On Tuesday, the Pound Sterling extended its gains, reaching around 1.3246, as the US Dollar struggled to recover following a dovish speech by Fed Chair Jerome Powell at Jackson Hole. Investors are now betting on a rate cut by the US central bank in September, providing a tailwind for GBP/USD. The pair traded at 1.3239, up by 0.40%.
Technical Outlook:
The GBP/USD uptrend continues despite the Relative Strength Index (RSI) being overbought, which might limit further advances. Reclaiming the top trendline of an ascending channel could lead to testing the March 22, 2022, peak at 1.3298 before challenging higher prices.
If the pair surpasses 1.3300, the next resistance would be the March 1, 2022, daily high at 1.3437. On the downside, a dip below 1.3200 could push GBP/USD towards the August 22 high at 1.3130, followed by 1.3100. Further weakness might find support at the July 17 peak turned support at 1.3044.
