GBP/USD flirts with year high, 1.34 next level to watch

The GBP/USD pair is testing the 1.3320 yearly high though early September's daily chart is pointing to near overbought conditions. Next stop on the upside is the 1.34 level, Yohay Elam, an analyst at FXStreet, briefs.

Key quotes

“After the Relative Strength Index on the 4-hour chart already entered overbought conditions, the RSI on the daily chart is nearing that position. The previous rise above 70 resulted in a consolidation phase in early August. Other indicators remain positive. GBP/USD is trading above the 50, 100, and 200 Simple Moving Averages, and momentum remains positive, despite weakening.” 

“Resistance is at the fresh 2020 high of 1.3320. Next, the round 1.34 level may be of interest before the December peak of 1.3510 recorded after the elections.” 

“Looking down, some support awaits at the previous peak of 1.3265, followed by 1.3185, a high point in early August. Further down, 1.3050 and 1.30 await GBP/USD.”