The British Pound’s impressive rally against the US Dollar has hit a pause on Thursday, slipping slightly to around 1.3230 after seven consecutive days of gains. Despite the minor dip, the short-term outlook for GBP/USD remains optimistic, supported by upward-sloping Exponential Moving Averages (EMAs) across all timeframes.
Adding to the bullish case, the 14-day Relative Strength Index (RSI) has staged a sharp V-shaped rebound—climbing from 40.00 to near the 70.00 mark—indicating strong positive momentum.
A fresh breakout above the April 16 high of 1.3292 could spark the next leg up, potentially targeting the September 25 high of 1.3430. A further push might even take the pair to the key psychological resistance at 1.3500.
However, if GBP/USD breaks below the April 15 low of 1.3164, sellers could take control, pulling the pair down toward the April 14 low of 1.3063 and possibly testing the crucial 1.3000 level.
