GBP/USD: Back to the uptrend channel, 1.2785 first level to watch

Wednesday's four-hour chart is showing the cable is back to the uptrend channel as GBP/USD extended its gains, hitting the highest since March and nearing 1.28, Yohay Elam, an analyst at FXStreet, briefs.

Key quotes

“GBP/USD is trading in the uptrend channel after a brief dip below it on Tuesday. The Relative Strength Index on the 4-hour chart is below 70, thus outside overbought conditions. Upside momentum has only somewhat waned and remains supportive of further gains.”

“The fresh high of 1.2785 is the first resistance level to watch. Breaking it opens the door to prices last seen before the pandemic, such as 1.2850 and 1.2990.” 

“Some support is at the previous peak of 1.2750, followed by 1.2625, which was Tuesday's low.”