Over the past 24 to 48 hours, GBP/USD has consolidated around the 1.3500 psychological level, trading within a narrow range. The closing price yesterday was approximately 1.3505, indicating that the cable remains steady with no significant breakout, reflecting market caution amid uncertainty in UK fundamentals and upcoming US macro data.

The market’s primary focus has shifted towards US economic reports, especially the imminent employment data, which is the key driver for GBP/USD movement. The pair briefly rallied to a fresh three-month high of 1.3562 before pulling back, signaling persistent buying momentum but tempered by the rebound in the US dollar. Despite some soft US economic indicators, the greenback has shown signs of recovery, leaving markets in wait-and-see mode for more decisive data points to confirm the dollar’s trend.

For the average investor, the GBP/USD’s recent stable consolidation suggests a tug-of-war between the pound and the dollar, with short-term moves heavily influenced by news and data releases. The market is poised for the upcoming US non-farm payrolls report, while UK-specific risks remain relatively muted, making US dollar performance the dominant factor. Investors should keep a close eye on the latest US macroeconomic data to guide their trading decisions moving forward.

Daily Chart

The daily chart reveals GBPUSD trading above the medium-term 50 and 200-day moving averages, indicating a bullish trend. Price has broken through previous resistance turning it into support. The Relative Strength Index (RSI) is in a moderately elevated zone, showing bullish momentum though nearing short-term overbought conditions. Bollinger Bands have narrowed, suggesting decreased volatility and a possible upcoming breakout. The MACD histogram remains positive, reinforcing buyer dominance.

1H Chart

On the hourly chart over the past 3-5 days, GBPUSD shows a steady upward trend with price consistently holding above the 20-period moving average and successfully testing the 1.35 support zone multiple times. The MACD has produced a bullish crossover, enhancing short-term bullish sentiment. Bollinger Bands are expanding, signaling increased volatility and the potential for significant price moves. Recent bullish engulfing candlestick patterns underpin the strong buying interest.

Technical Trend:  Cautiously Bullish

Technical signals for GBPUSD remain bullish, notably the daily chart’s firm hold above 1.35 support and the hourly MACD bullish crossover. The critical level to watch is the 1.35 floor and whether the price can sustain above it and break the recent high of 1.3567. The bullish engulfing patterns and expanding Bollinger Bands indicate rising momentum and the potential for strong moves ahead. Traders should monitor upcoming US data closely, as it may quickly alter market sentiment and price action.

Today’s economic calendar does not feature any major data directly impacting the GBPUSD pair. However, key US releases such as ISM Non-Manufacturing indices and durable goods orders in the afternoon could influence the USD’s strength. Stronger-than-expected US data would bolster the USD and likely pressure GBPUSD lower; weaker data could support further pound strength. European inflation figures released earlier mostly impact EUR but have limited immediate effect on GBPUSD.

Resistance & Support

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