September begins with minimal gains

• GBP/USD fails to hold above July high of 1.3142, August close at 1.3122, suggesting possible consolidation.
• The daily chart reveals a bullish-harami pattern; the 1.3199 offset could target a YTD high of 1.3266.
• Break below 1.3109 risks a drop to 1.3044 and further to 50-DMA at 1.2894.
• The moment is neutral to optimistic, with a positive but stabilizing RSI.

GBP/USD starts September on a slightly positive note and is trading at 1.3152, up over 0.20% during the North American session. The session is expected to be light as US financial markets remain closed to mark Labor Day.

GBP/USD Price: Technical Insights

The GBP/USD monthly chart witnessed a failure of the July 2023 monthly high of 1.3142. Traders failed to post a daily close above the latter, ending August at 1.3122.

From a weekly chart perspective, GBP/USD is set for consolidation around the 1.3140-1.3270 range ahead of the release of US Non-Farm Payrolls data, which would be crucial for the US Federal Reserve to to determine the size of the first rate cut at the September 18 meeting.

Meanwhile, from a daily chart perspective, GBP/USD is forming a bullish-harami candlestick chart pattern, although traders need to clear last Friday’s peak at 1.3199 before the pair can target the year to last year date (YTD). highs of 1.3266.

Conversely, if GBP/USD consolidates and breaks below the August 29 low of 1.3109, this could exacerbate a decline towards the most recent support seen at the July 17 swing high of 1.3044 before to drop to the 50-day moving average (DMA) at 1.2894.

Momentum is neutral to biased bullish as the Relative Strength Index (RSI) is in bullish territory but has turned flat.

GBP/USD Price Action – Daily Chart