British Pound Extends Rally Against US Dollar

The GBPUSD currency pair has broken out above the 1.2761 resistance level, extending its impressive upside move that originated from the 1.2299 low. The rally has carried the pair as high as 1.2780 in recent trading sessions, with the bullish momentum showing no signs of letting up.

Further Upside Targets Emerge

Following the breakout above 1.2761, the next key resistance levels to watch on the topside are located in the 1.2800 and 1.2870 areas.If buyers can push the GBPUSD above the 1.2800 handle, it would open the door for a potential rally toward the 1.2870 resistance zone.

Key Support at 1.2740

While the technical outlook remains constructive, traders will want to keep a close eye on the 1.2740 area as initial support. A breakdown below this level could see the GBPUSD retrace back toward the next support in the 1.2671 region.If the 1.2671 support gives way, it would likely trigger a more substantial pullback toward the rising trendline support visible on the 4-hour chart.

Upside Momentum Remains Strong

For now, the GBPUSD uptrend remains firmly in place, with the path of least resistance pointing to further gains toward the 1.2800 and 1.2870 targets as long as the 1.2740 support holds.However, a breakdown below 1.2740 and 1.2671 would be a significant technical event, likely opening the door for a deeper pullback toward the rising 4-hour trendline support.

Levels to Watch

The key levels to watch in the GBPUSD are the 1.2800 and 1.2870 upside targets, along with the 1.2740, 1.2671 support areas, and the rising 4-hour trendline support.

As long as the pair remains above 1.2740, the overall technical bias will remain tilted to the upside, with the potential for a continuation move toward the 1.2870 level.

The GBPUSD uptrend shows no signs of stalling, with the pair extending its rally above the 1.2761 resistance. While further gains appear likely, traders will want to closely monitor the key support levels for potential signs that the bullish momentum could be waning.