GBP/USD Reclaims 100- and 200-Day MAs; Eyes 1.3696

GBP/USD reclaimed its 100-day moving average at 1.3444 and its 200-day moving average at 1.3413 following a structural breakout in early April. The pair is testing a major resistance zone at 1.3696 while buyers are defending the 1.3500 pivot.

The advance accelerated after the pair cleared a long-running descending trendline and moved back above both key moving averages. The rally has progressed amid a weaker U.S. dollar and firmer risk appetite in global markets. The daily Relative Strength Index stands at 62.7, below the 70 overbought threshold.

On the four-hour chart, the price showed an impulsive leg higher and a retest of the 1.3500 area before extending. The H4 RSI is near 65.7. Shorter-term technical support sits at 1.3378, and intraday moving averages are sloping upward while price remains above that level.

On the hourly chart, the 100-period moving average is near 1.3509. Immediate resistance is clustered between 1.3560 and 1.3585. A sustained hourly close above 1.3584 would likely open a move to the 1.3600 psychological level and then to 1.3650. If the pair fails to clear 1.3584 and slips below 1.3540, traders may see a pullback to the 1.3500 pivot. A break below 1.3500 would increase the chance of a corrective move toward roughly 1.3422.

Market participants have shifted expectations after the pair reclaimed both moving averages, and many are watching trade volume on potential breakouts to limit false signals. Key levels to watch are resistance at 1.3584, 1.3600 and 1.3696, and support at 1.3500, 1.3444 and 1.3378.