Over the past 24 to 48 hours, GBP/USD experienced volatility but lacked a clear directional trend, closing yesterday at 1.3497. Market attention was focused on the latest UK GDP data and US Producer Price Index (PPI) report, neither of which provided strong momentum, causing the pair to oscillate within the 1.3475 to 1.3500 range.

Recent market news highlighted soft US producer prices that kept the dollar under pressure, which in turn supported the pound above the 1.34 level. Despite robust UK GDP figures, market reaction was cautious, reflecting investors’ wait-and-see attitude about the broader economic outlook. Additionally, fluctuating risk sentiment contributed to unclear buying or selling pressure, leaving short-term momentum indecisive.

Simply put, for the average investor, GBP/USD’s recent price action mirrors the push and pull between global economic data: a weaker dollar due to easing US price pressures, and steady UK economic fundamentals providing some support to the pound. Moving forward, traders should closely monitor upcoming US labor market and consumer sentiment releases, as these will be critical drivers for future currency moves.

Daily Chart

The daily chart for GBPUSD reveals a steady rebound from roughly 1.3350 towards current levels near 1.35. The pair has broken above the 20-day moving average, signaling a strengthening medium-term bullish trend. Bollinger Bands are moderately contracting, indicating focused momentum. The MACD histogram has turned positive with a bullish crossover between the signal and MACD lines, confirming underlying buying pressure. Overall, the daily technical landscape aligns with improving UK fundamentals, suggesting a sustained uptrend in the near to medium term.

1H Chart

The hourly chart over the last 3 to 5 days shows GBPUSD oscillating within a range between 1.3470 and 1.3520, with short-term moving averages forming a bullish crossover. The expanding Bollinger Bands and frequent touches at the upper band underline strong short-term buying interest. The MACD remains above zero without significant divergence, implying robust upward momentum. Notably, the recent bullish engulfing candlestick pattern signals potential continuation of the uptrend over the next 24 hours.

Technical Trend:  The current trend for GBPUSD is decisively bullish, especially as it maintains above the 20-day moving average on the daily chart. Short term momentum supports a continuation of the upward price movement with some volatility expected around key technical zones.

The technical setup for GBPUSD indicates a successful breakout above the medium-term descending trend line with strong support around 1.34. The daily MACD bullish crossover suggests reinforcing upward momentum, while the hourly bullish engulfing candle strengthens the short-term buy signal. Traders should monitor the upcoming US data releases closely as they may act as catalysts for price acceleration or reversal. A decisive breach of key resistance levels could open the door for further upside potential.

Today’s economic calendar highlights key events relevant to GBPUSD including the US Retail Sales data and the University of Michigan Consumer Sentiment survey, both scheduled for 14:30 and 16:00 GMT+1 respectively. Stronger-than-expected retail sales figures could bolster USD strength, likely pressuring GBPUSD downward. Conversely, weaker data would favor a GBPUSD rally. There are no significant UK data releases today, placing the spotlight firmly on US numbers for immediate market impact.

Resistance & Support

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