British Pound Forecast: GBP/USD Rally Eyes 2023 High

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By :  ,  Strategist

British Pound Outlook: GBP/USD

The recent advance in GBP/USD seems to have stalled ahead of the 2023 high (1.3143) as it pulls back from fresh yearly high (1.3130), but the rally may persist as the Relative Strength Index (RSI) flirts with overbought territory.

British Pound Forecast: GBP/USD Rally Eyes 2023 High

Keep in mind, GBP/USD took out the July high (1.3045) earlier this week even though the Bank of England (BoE) shifts gears ahead of the Federal Reserve, and the British Pound may continue to outperform against its US counterpart as the 50-Day SMA (1.2818) reestablishes a positive slope.

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With that said, it remains to be seen if the Kansas City Fed Economic Symposium in Jackson Hole, Wyoming will influence GBP/USD as Fed Chairman Jerome Powell and BoE Governor Andrew Bailey are scheduled to speak at the event, but the exchange rate may continue to trade to fresh yearly highs as it extends the bullish price series from last week.

GBP/USD Price Chart –Daily

GBPUSD Daily Chart 08222024

Chart Prepared by David Song, Strategist; GBP/USD on TradingView

  • GBP/USD may attempt to test the 2023 high (1.3143) as it continues to carve a series of higher highs and lows, with a break/close above the 1.3140 (78.6% Fibonacci extension) to 1.3150 (23.6% Fibonacci extension) region opening up 1.3210 (50% Fibonacci extension).
  • A further advance in GBP/USD should keep the Relative Strength Index (RSI) in overbought territory, but the oscillator may show the bullish momentum abating if it struggles to hold above 70.
  • A move below 1.3010 (61.8% Fibonacci extension) may push GBP/USD back towards the 1.2900 (23.6% Fibonacci retracement) to 1.2910 (50% Fibonacci extension) area, with the next region of interest coming in around 1.2760 (61.8% Fibonacci retracement) to 1.2830 (23.6% Fibonacci retracement).

Additional Market Outlooks

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--- Written by David Song, Strategist

Follow on Twitter at @DavidJSong

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