Over the past 48 hours, the GBP/USD pair has experienced notable sideways movement, trading close to the 1.3500 level, aligning closely with yesterday’s closing price of 1.35068, indicating a lack of strong directional momentum.

This steady trading in GBP/USD is largely driven by the market’s anticipation of upcoming US inflation data and the UK’s Q2 GDP figures. These key economic indicators are expected to heavily influence monetary policy outlooks on both sides of the Atlantic, prompting investors to adopt a wait-and-see approach pending clear signals.

From an investor’s perspective, the current market is akin to waiting for two major reports before making decisive moves — similar to reviewing critical investment analyses before committing capital. These reports will determine capital flow and risk appetite, which directly impact GBP/USD price behavior.

Furthermore, softer US employment figures have exerted downward pressure on the US dollar, helping the British pound maintain its footing above 1.35, reinforcing the recent resilience seen in the pound’s trading range.

Daily Chart

The daily chart shows GBPUSD retracing from its yearly high around 1.3868 and finding robust support near 1.34. The Bollinger Bands are contracting, signaling lower volatility, while the MACD remains above zero albeit with reduced momentum, indicating cautious bullish pressure. Price has broken above a descending triangle pattern formed recently, suggesting medium-term upside potential as the pair consolidates into a constructive base.

1H Chart

On the hourly chart covering the last 3 to 5 days, GBPUSD has oscillated within 1.3470 to 1.3550. Short-term moving averages are aligned bullishly, with the 20-period MA providing steady support. Bollinger Bands are narrow, signaling a lack of strong momentum currently. MACD shows a bullish crossover developing, while a recent bullish engulfing candlestick pattern suggests an upside move may unfold within the next 24 hours, providing a near-term entry opportunity.

Technical Trend:  The current trend is a cautious bullish consolidation, with technical indicators maintaining positive tone but lacking strong conviction for a clear breakout, essentially a tempered uptrend in a holding pattern.

Technically, GBPUSD remains above the 20-day moving average and has decisively broken out from a descending triangle, confirming renewed bullish intent. The MACD bullish cross and supporting bullish engulfing candlestick on the hourly chart reinforce short-term upside momentum. However, narrowing Bollinger Bands warn of imminent volatility expansion. Immediate resistance resides around 1.3550 to 1.3600, where a sustained breakout would confirm strength. A failure here could prompt a retracement towards 1.3460 support, keeping the pair range-bound for now. Traders should monitor price action near these levels carefully ahead of major economic releases.

Today’s economic calendar features key Consumer Price Index (CPI) releases from Germany and the US. The US CPI at 14:30 GMT+1 is expected at 3.4% year-over-year, slightly below the previous 3.5%. Since GBPUSD includes USD, better-than-expected US inflation data could strengthen the dollar and pressure GBPUSD downward; conversely, weaker inflation data would support GBPUSD. No direct UK data is scheduled today, leaving traders to focus primarily on US inflation outcomes. No other significant events directly impacting GBPUSD are reported for today.

Resistance & Support

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