Holds position above 1.3000 testing yearly highs

• GBP/USD is testing a yearly high of 1.3044 set on July 17.
• The 14-day RSI momentum indicator is positioned slightly below the 70 level, suggesting a potential correction soon.
• The pair can navigate the area around the lower limit of the ascending channel at the 1.2950 level.

GBP/USD is snapping its four-day winning streak, trading around 1.3020 during the Asian session on Wednesday. Daily chart analysis shows that the pair is trending upward in an ascending channel pattern, suggesting an upward bias.

The MACD (Moving Average Convergence Divergence) indicator suggests bullish momentum as the MACD line is above the center line and shows the divergence above the signal line. Additionally, the 14-day Relative Strength Index (RSI) is consolidating slightly below the 70 level, suggesting a potential near-term correction.

For resistance, GBP/USD is testing a yearly high of 1.3044 reached on July 17. A break above this level could lead the pair to explore the region around the upper limit of the ascending channel at the 1.3100 level.

On the downside, GBP/USD may be trading in the area around the lower boundary of the ascending channel at 1.2950, ​​followed by the nine-day EMA at 1.2924. A break below the latter could guide the pair to the rebound support at the 1.2615 level seen in June.

GBP/USD: Daily chart