Over the past 24 to 48 hours, the GBP/USD currency pair exhibited notable bullish momentum, climbing to a three-month high with a closing price around 1.3513, slightly below yesterday’s close of 1.35165. This movement was primarily driven by a weakening US dollar, which boosted the pound’s strength amid a generally bullish market sentiment towards GBP.

Recent market news highlights that with a general reduction in global flows into the US dollar, GBP/USD surged approximately 0.45% on Tuesday. Steady UK GDP growth in the third quarter, coupled with the Bank of England’s relatively hawkish rate cut, further reinforced confidence in the pound. Additionally, ongoing gains in US stock markets reduced the safe-haven appeal of the dollar, helping pound to break above the key 1.35 level.

For the average investor, the pound’s strength over this period reflects the direct impact of a softening US dollar in forex markets. With no major economic releases from the UK or US, the dollar’s weakening stance became the main driver boosting GBP/USD. For those holding GBP assets or looking to trade the pair, this trend signals potential continued inflows into the pound amid dollar weakness, especially underpinned by stable UK economic fundamentals.

Daily Chart

The daily chart shows GBPUSD steadily rising from recent lows, breaking through the 1.34 to 1.35 resistance zone. The 50-day moving average has crossed above the 200-day moving average, forming a bullish golden cross, indicating a strengthening long-term trend. Bollinger Bands are widening, signaling increased volatility and strong buying pressure. The MACD histogram is increasing, with the MACD line above the signal line, confirming strong momentum supporting higher prices ahead.

1H Chart

The hourly chart over the past 3-5 days shows GBPUSD trading firmly within the 1.3450 to 1.3550 range on an upward trajectory. Short-term moving averages, such as the 20 and 50 period MAs, are aligned bullishly, and price remains near the upper Bollinger Band, indicating strong short-term buying interest. A recent bullish engulfing candlestick pattern suggests buyers have taken control, signaling the potential for tests of higher resistance within the next 24 hours.

Technical Trend:  Trend Direction: Decisively bullish with strong and steady upward momentum.

Technically, GBPUSD remains in a strong bullish trend, underscored by the golden cross on the daily chart and widening Bollinger Bands supporting upward momentum. The recent bullish engulfing candlestick on the hourly chart further confirms short-term upside potential. Momentum and volume indicators support continued buyer dominance, and traders should watch for key resistance breaks to confirm further trend continuation.

Today’s economic calendar does not include any direct significant events related to GBP or USD. The US will release third quarter preliminary GDP data among other figures, but these are largely within expected ranges or unlikely to move the GBPUSD pair drastically. Traders should watch for any surprises in US data which could momentarily affect the dollar’s strength and thus influence GBPUSD price action.

Resistance & Support

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