It reaches a new multi-year high above 1.3200

• The GBP/USD uptrend remains intact as long as it remains above 1.3043.
• If buyers claim 1.3298, this will expose the March 2022 high at 1.3437.
• A break below 1.3200 will expose additional support levels such as August 22nd 1.3130 and the 1.3100 figure.

Sterling extended gains and refreshed multi-year highs around 1.3246 on Tuesday as the greenback failed to recover from a surprisingly dovish tone from Fed Chairman Jerome Powell’s speech his at Jackson Hole. Investors increased their bets that the US central bank will cut interest rates at its September meeting, a tailwind for GBP/USD. The pair changed hands at 1.3239 and is up 0.40%.

GBP/USD Price: Technical Insights

GBP/USD’s uptrend continues even as the Relative Strength Index (RSI) is overbought, which could limit the pair’s advance higher. However, recovery of the top line of an ascending channel could put the test of the March 22, 2022 peak at 1.3298 in play before triggering higher prices.

In this outcome, GBP/USD’s next resistance would be 1.3300. Once broken, the daily high of March 1, 2022 will appear at 1.3437.

Conversely, a break below 1.3200 may send GBP/USD towards the August 22 high at 1.3130 before 1.3100. On further weakness, the next support would be the July 17 peak, which turned into support at 1.3044.

GBP/USD Price Action – Daily Chart