The GBP/USD currency pair is experiencing a rebound, rising towards 1.3850, near its four-year highs. This recovery follows recent losses from the previous trading session, with prices trading around 1.3830 during Asian hours on Thursday. The technical analysis of the daily chart reveals a potential bearish reversal as the range narrows, indicating a decline in buyer momentum within a rising wedge pattern. However, the pair remains above the rising nine-day Exponential Moving Average (EMA) and the 50-day EMA, maintaining a short-term bullish bias. The faster average comfortably surpasses the slower line, with both slopes pointing upwards, reinforcing the positive structure. Pullbacks could find support near the nine-day EMA, while the 50-day EMA supports the broader uptrend. The 14-day Relative Strength Index (RSI) at 75 (overbought) suggests stretched momentum, which could temper gains. The RSI remains above 70, and an unwinding of momentum could precede a healthier extension. Immediate resistance lies at 1.3869, the highest since September 2021, followed by the upper boundary of the rising wedge around 1.3910. A sustained break could open a fresh leg higher toward 1.4248, the highest since April 2018. The primary support is seen at the nine-day EMA of 1.3667, followed by the lower rising wedge boundary around 1.3610. A break below the wedge would cause the emergence of a bearish bias and expose the 50-day EMA support at 1.3461. The British Pound (GBP) was the strongest against the US Dollar (USD) today, as indicated by the percentage change table.
