GBP/USD Consolidates Below Fresh Multi-Month Highs
GBP/USD traded near a fresh 6½-month high of 1.3675, reached on Friday, and remained in a quieter consolidation phase on Monday as investors turned cautious ahead of this week’s key risk events. Market participants are focused on the release of the U.S. PCE Price Index and remarks from Fed Governor Kevin Warsh at the Jackson Hole Symposium, both of which are expected to provide fresh insight into inflation trends and potential guidance on the Federal Reserve’s policy outlook for the coming months.
Technical indicators suggest that bullish momentum may be easing. Negative divergence on the 14-day momentum indicator, overbought RSI conditions, and the long upper shadows on Thursday’s and Friday’s daily candlesticks all point to waning upside traction.
Despite these warning signals, the broader bullish outlook remains intact. Any corrective pullbacks are expected to be limited, ideally finding support at the rising 10-day moving average near 1.3559. A deeper retracement should remain contained above 1.3520, which marks the 38.2% Fibonacci retracement of the 1.3273-1.3675 rally. Holding above these levels would keep the bullish structure in place and maintain the potential for a renewed.
Res: 1.3655; 1.3675; 1.3712; 1.3730
Sup: 1.3617; 1.3580; 1.3520; 1.3500
