It rises as US data fuels rate cut speculation

• GBP/USD breaks above 1.3140, gaining near-term momentum as RSI tilts in favor of buyers.
• Clearing 1.3200 opens the door to challenge the YTD peak of 1.3266, with further resistance at 1.3300.
• Sellers need to push below 1.3140 to test key support levels at 1.3100 and 1.3043.

Sterling is enjoying a nice rebound from a weekly low of 1.3087 and is rising in early trade on Wednesday during the North American session, up more than 0.22% against the greenback. Weak US jobs data raised the odds of a 50 basis point rate cut by the Federal Reserve and supported GBP/USD gains, trading at 1.3163.

GBP/USD Price: Technical Insights

GBP/USD remains partially bullish after consolidating in the narrow 1.3080-1.3140 range, with buyers removing the latter, which would open the door for higher prices. Buyers have gained short-term momentum, as seen by the Relative Strength Index (RSI).

If the bulls break above 1.3200, the next resistance would be the year-to-date (YTD) high of 1.3266. Next, 1.3300 would be in play before buyers challenge the March 23, 2022 high at 1.3437.

Instead, sellers need to pull prices below 1.3140 and challenge the 1.3100 figure. Once these levels are cleared, the next support would be the 1.3043 July 17 support, followed by the 1.3000 figure, and the 50-day moving average (DMA) would rise to 1.2905.

GBP/USD Price Action – Daily Chart