Over the past 24 to 48 hours, GBP/USD has remained elevated, closing yesterday at 1.36603, near the highest level since September 2024 around 1.3680. The British pound’s strength against the US dollar was primarily driven by a broadly weaker dollar and stronger-than-expected UK economic data, particularly robust retail sales, which bolstered sterling demand.

Latest market news highlights that GBP/USD is holding above mid-1.3600s, maintaining its four-month peak amid sustained dollar softness. The UK’s CPI data also showed a mild rebound to 3.4%, reinforcing confidence in the nation’s economic recovery. Meanwhile, Wall Street showed signs of slowing momentum, with some labor and consumer metrics disappointing, which weighed on the dollar.

For the average investor, this translates to an environment where the pound is supported by positive UK data and a slipping dollar, providing sterling with a potential boost. GBP/USD currently presents a compelling opportunity among European currencies, given its stable fundamentals and potential for further gains, despite ongoing geopolitical risks that may add some short-term volatility.

Daily Chart

The daily chart shows GBPUSD in a sustained uptrend since the end of last year, with prices breaking above both the 50-day and 200-day moving averages, confirming a bullish long-term bias. The Bollinger Bands are widening, indicating increased volatility and trend strength. MACD remains positive without signs of weakening momentum. The price structure suggests an ascending triangle formation which, upon breaking the upper boundary, could propel prices toward and beyond 1.37.

1H Chart

On the hourly chart over the past five days, GBPUSD is exhibiting a steady rebound after minor pullbacks. Price consistently finds support near the 20- and 50-hour moving averages, while MACD shows a bullish crossover above zero, signaling rising short-term momentum. A recent bullish engulfing candlestick pattern confirms strong buyer dominance, suggesting further near-term gains are likely.

Technical Trend:  GBPUSD is currently exhibiting a ‘Decisively Bullish’ trend, with market sentiment strongly favoring pound strength amid ongoing upward momentum.

Technically, GBPUSD remains in a clear bullish phase, supported by an ascending triangle on the daily chart and a recent bullish MACD crossover on the hourly chart. The expanding Bollinger Bands reflect increasing volatility and trend decisiveness. The recent bullish engulfing candlestick confirms buyers’ control. Traders should consider buying on dips while monitoring US data releases that may trigger short-term fluctuations.

There are no major UK or US economic events scheduled today that would directly impact GBPUSD. Key data releases from Germany and Poland, including the Ifo Business Climate and retail sales, are due this morning but are expected to have minimal influence on the cable pair. The upcoming US durable goods orders report may provide some short-term USD support if results beat expectations, potentially inducing brief volatility in GBPUSD without altering the prevailing bullish trend.

Resistance & Support

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