GBP/USD Price Forecast: Rises toward 1.3400 barrier near seven-month highs

• GBP/USD could encounter primary resistance at the psychological level of 1.3400
• The 14-day RSI moves above 70, suggesting a potential downside correction may be on the horizon.
• The immediate support lies at the nine-day EMA, near 1.3194, followed by the ascending channel's lower boundary around 1.3150.

The GBP/USD pair continues its winning streak that began on April 8, trading around 1.3370 during the Asian hours on Monday. Daily chart technical analysis points to a continued bullish trend, with the pair advancing within an ascending channel pattern.

Additionally, the GBP/USD pair continues to trade above the nine-day Exponential Moving Average (EMA), reinforcing the short-term bullish momentum. However, the 14-day Relative Strength Index (RSI) has climbed above 70, indicating overbought conditions and suggesting a potential downside correction may be on the horizon.

The GBP/USD pair encounters initial resistance at the psychological level of 1.3400, followed by 1.3434 -- a level not seen since September 2024 and the lowest since March 2022. A sustained move higher could reinforce the bullish bias, with the pair potentially targeting the ascending channel's upper boundary near 1.3480.

On the downside, immediate support is seen at the nine-day EMA, around 1.3194, followed by the ascending channel's lower boundary near 1.3150. A break below this crucial area could undermine short-term bullish momentum, with the 50-day EMA at 1.2906 emerging as the next significant support level.

A deeper decline below this level could dent the medium-term bullish outlook, potentially driving the GBP/USD pair toward the two-month low of 1.2577, recorded on March 3, and further down to the three-month low of 1.2249, registered on February 3.

GBP/USD: Daily Chart