The price of GBP/USD is now reaching a very tight squeezing point, although there are still key levels that traders will be closely watching. The first price level in focus is sitting along the upper trendline reading £1.2998, the pair is actually trading higher than this so far on the day (£1.3028). Just a nudge higher is the resistance of £1.3044, if today’s session closes above this resistance, then there would be no reason to not witness an extension toward last year’s high of £1.3143 (this assumption is based on a technical aspect and with regards to recent momentum). Based on the current positioning of the forex pair, and recent USD weakness due to growing expectations of a Fed rate cut in September, the bias sways towards the upside for GBP/USD. Therefore, such a price squeeze, in theory, should lead to a rally higher in the coming weeks/months. However, this is not guaranteed and the duration of any possible rally cannot be predicted accurately. The pair does have support levels in case of any pullbacks if momentum starts to fade, with the first key level around £1.2760 (along the lower trendline). Followed by this is the level of £1.2665 (August low), only a break below here could lead to any further declines in the medium term. The technical indicators support the bullish bias as the MACD is seen rising and the RSI is now bullish, reading 63.