Over the past 24 to 48 hours, the GBP/USD pair has continued to face downward pressure, dropping from yesterday’s closing price of 1.35597 to around a two-week low near 1.3500. The primary driver behind this move is the dovish stance from the Bank of England (BoE), coupled with a firmer US dollar. The BoE’s commitment to maintaining a low interest rate environment has dampened sentiment toward the British pound, while the US dollar has strengthened amid strong US economic data and renewed safe-haven demand, causing GBP/USD to decline for the third consecutive day.

For the average investor, this scenario means that the BoE’s slower pace of rate hikes reduces the attractiveness of holding GBP, while positive US economic indicators bolster the USD. These market dynamics can impact multinational companies’ earnings expectations and import-export pricing, making it essential for investors engaging in forex trading or holding GBP assets to closely monitor central bank policy and USD strength.

Daily Chart

The daily chart shows GBPUSD declining steadily from the early-year high of 1.3876. The price has fallen below both the 50-day (1.34934) and 200-day (1.34215) moving averages, indicating weakening medium to long-term bullish momentum. Bollinger Bands are showing an expanding lower band, signaling increased volatility and potential further downside. The MACD remains below zero, confirming persistent selling pressure.

1H Chart

The hourly chart over the past 3-5 days displays GBPUSD consolidating around the 1.3500 support zone. While brief rebounds above the 20 and 50-period moving averages occurred, selling pressure quickly resumed, with the MACD broadening negatively. Bollinger Bands narrowing suggest an impending breakout. A recent candlestick with a small lower wick indicates some short-term buying interest near support.

Technical Trend:  Cautiously Bearish Consolidation

Technically, the key focus is whether GBPUSD can hold the critical psychological support at 1.3500. The daily chart shows clear downward momentum with an expanding negative MACD, hinting at a bearish bias in the medium term. Hourly price action shows consolidation that, if broken below 1.3500, could accelerate the decline. The recent hammer candlestick suggests short-term defensive buying, but dollar strength poses ongoing resistance. Swing traders should wait for a clear breakout confirmation before committing.

Today’s economic calendar features no major UK or US economic releases directly impacting GBPUSD (noting the times are in GMT+1, which corresponds to morning into early afternoon in Hong Kong time). However, traders should remain alert to any shifts in global risk sentiment or USD-related news that could indirectly affect the pair. Monitoring overall market dynamics remains crucial for GBPUSD positioning.

Resistance & Support

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