Hits annual high above 1.3350 on weak US-UK data

• GBP/USD rises as UK and US Flash PMIs point to economic slowdown.
• The pair’s uptrend is testing the top of an ascending channel, approaching the key resistance at 1.3400.
• A break below 1.3300 could trigger a correction to 1.3248 and 1.3200, with additional supports at 1.3100 and 1.3001.

Sterling rose to a new 2024 record high of 1.3355 versus the greenback on Monday, up more than 0.20% as S&P Global Flash PMIs in the UK and US showed both economies slowing. Meanwhile, dovish comments from Chicago Fed President Austan Goolsbee weighed on the money. GBP/USD is trading at 1.3350.

GBP/USD Price: Technical Insights

The GBP/USD daily chart suggests that the uptrend is accelerating. It is testing the top of an ascending channel which, if released, could pave the way to challenge the psychological 1.3400.

The Relative Strength Index (RSI) is showing momentum that favors buyers. Therefore, GBP/USD could extend its short-term gains.

If GBP/USD breaks above 1.3400, the next resistance would be the March 1, 2022 peak at 1.3437. Once broken, the next ceiling level would be 1.3450 before 1.3500.

Conversely, if GBP/USD breaks back below 1.3300, this could pave the way for a correction. The first support will be the September 23 low of 1.3248, followed by the 1.3200 figure. On further weakness, the next stop will be 1.3100, before diving to 1.3001, the cycle low since 9/11.

GBP/USD Price Action – Daily Chart