The GBP/USD maintained its upward trend during the Asian session on Monday, and the rebound that began on April 8th is still ongoing. The current price is around 1.3370 and continues to operate in an upward trend, indicating that the short-term trend is still bullish.

Technical graphics indicate that the exchange rate remains above the nine day moving average (EMA), providing support for short-term bulls.

However, there are warning signals on the technical front. On the 14th, the RSI index has risen above the 70 level, indicating that the market is in an overbought state or suggesting that short-term correction risks are accumulating.

From the current trend, the first strong resistance level appears at the psychological integer level of 1.3400. Once it breaks through, the next target looks towards 1.3434, which is the highest point since September 2024. Meanwhile, the 1.3480 near the upper track of the ascending channel also constitutes a further upward target.

Technical analysts point out that if the exchange rate continues to remain above 1.3400, it may attract more kinetic funds to enter and push it to challenge the 1.3480 area.

If there is a pullback trend, the initial support level will fall around the nine day EMA of 1.3194, followed closely by the lower track of the channel around 1.3150. Breaking below this area will disrupt the current short-term structure or trigger a further drop to the 50 day EMA of 1.2906.

If the downward trend continues and breaks through the 1.2906 level, it will break the mid-term upward trend. At this point, the price may retrace to the two month low of 1.2577 on March 3, or even test the three-month low of 1.2249 on February 3.

According to market research, some foreign exchange strategists believe that although the pound is still supported by favorable fundamentals in the medium term, technical adjustments may occur at any time, especially when it reaches the psychological level of 1.3400.

Editor's viewpoint:

The current trend of the pound is still under bullish control, but there are clear signs of overbought technical indicators. We should closely monitor the competition between the resistance of 1.3400 and the support range of 1.3194. If the breakthrough fails or the support is unstable, the short-term correction risk will increase significantly. In the medium term, as long as we hold above 1.2900, the overall trend will remain upward.