• GBP/USD trades at 1.3403, down 0.08%, close to its two-year peak.
• Momentum fades with potential negative divergence, but a break above 1.3437 could target 1.3450 and 1.3500.
• A drop below 1.3312 could see further declines toward the September 23 low of 1.3248.

The Pound Sterling registered minuscule losses against the Greenback, yet it remains close to two-year peak levels on Friday. The US Bureau of Economic Analysis revealed that inflation is about to hit the Fed’s 2% target. At the time of writing, the GBP/USD trades at 1.3403, down 0.08%.

GBP/USD Price Forecast: Technical outlook

The pair is upward biased, though the trend has lost some steam as buyers failed to push the GBP/USD to a new record high in 2024.

As price action continues to edge higher, momentum has faded. The Relative Strength Index (RSI) continues to edge lower, while spot prices are aimed higher. Hence, a negative divergence might be forming, but sellers must push prices below the top trendline of an ascending channel.

If GBP/USD extends its gains past the March 1, 2022 peak of 1.3437, the next resistance would be 1.3450, followed by 1.3500.

Conversely, if the major drops below the September 25, 26 low of 1.3312, further losses beneath. The next support would be the September 23 low at 1.3248, followed by the 1.3200 figure.