GBP/USD Price Forecast: Recovers, aiming for 1.3400 on upbeat sentiment

• GBP/USD gains 0.59%, trading at 1.3394 after rebounding from a daily low of 1.3312.
• Break above 1.3400 could push the pair towards the YTD high of 1.3437 and further resistance at 1.3500.
• Failure to reclaim 1.3400 may lead to testing the September 25 low of 1.3312.

The Pound Sterling climbs over 0.59% against the Greenback, boosted by an improvement in risk appetite, sponsored by China's stimulus to its economy and increasing odds for a 'soft landing' in the US after revealing robust economic data. The GBP/USD trades at 1.3394 after bouncing off daily lows of 1.3312.

GBP/USD Price Forecast: Technical outlook

The GBP/USD resumed its uptrend after diving below the top trendline of an ascending channel, which, in the short term, was a sign of sellers' strength. However, bulls emerged around the week's lows and lifted the exchange rate. Still, it remains shy of the crucial 1.3400 figure, today's high.

If GBP/USD reclaims 1.3400, the next resistance will be the 1.3429-1.3437 area, the confluence of the current year-to-date (YTD) high and March 1, 2022 daily high, followed by 1.3450. On further strength, 1.3500 will emerge as the next key resistance level.

Conversely, GBP/USD failure at 1.3400 will sponsor a test of the September 25 daily low of 1.3312. A decisive break will expose the August 27 high turned support at 1.3266, followed by the September 23 low of 1.3248.

GBP/USD Price Action - Daily Chart