Over the past 24 to 48 hours, the GBP/USD exchange rate demonstrated a notable rebound, closing near the 1.36 level, up from yesterday’s close of 1.35516 and hitting the highest levels in about a month. This strength was primarily driven by weaker US economic data, especially soft retail and Producer Price Index (PPI) readings, which dampened market expectations for further Federal Reserve rate hikes.

Latest market news highlights that sterling’s rally was supported by favorable yield spreads and a decline in bearish hedges. The market broadly anticipates the US monetary policy turning more dovish as the Bank of England maintains a hawkish stance, benefiting the pound via improved yield dynamics. Additionally, diminished Fed tightening bets have paved the way for sterling to break the key psychological resistance near 1.36.

For the average investor, the recent pound appreciation can be likened to the currency “catching a breather,” as US economic softness weighs on the dollar, giving sterling a boost. This underscores how market movements are closely tied to macro data releases and central bank policy shifts, emphasizing the importance of staying updated on the latest market news to effectively navigate forex trading.

Daily Chart

The daily GBPUSD chart shows an ascending trend from recent lows, with prices trading above the 20-day and 50-day moving averages, indicating medium-term bullish momentum. The Bollinger Bands have initiated expansion after a period of contraction, suggesting increasing volatility. The MACD histogram is growing, with the fast line positioned above the slow line, confirming bullish strength. The chart pattern suggests a breakout scenario, possibly targeting the yearly high near 1.3868. Traders should monitor the 1.34-1.35 support zone closely as a critical level for maintaining the upward trend.

1H Chart

Hourly analysis over the past 3-5 days reveals GBPUSD rebounding sharply off support near 1.3520. The 20-hour moving average has served as a dynamic support multiple times without being decisively broken. The Bollinger Band midline is sloping upward, with prices frequently bouncing off it and testing the upper band, indicating active short-term buying interest. The MACD is signaling a likely bullish crossover combined with a recent bullish engulfing candlestick on the hourly chart, suggesting further upside potential in the next 24 hours. Intraday traders should focus on resistance around recent highs for breakouts confirming continued momentum.

Technical Trend:  The overall trend is strongly bullish (decisively upward), with clear momentum and technical confirmations pointing to continuation of the upward move.

GBPUSD is displaying several strong technical bullish signals: a positive MACD alignment with expanding Bollinger Bands suggests sustained upward momentum. The confirmed breakout on the daily chart and the appearance of a bullish engulfing pattern on the hourly chart indicate robust buying interest. Additionally, market fundamentals such as weak US data and a softer dollar bolster the technical setup. The critical resistance zone between 1.355 and 1.36 will be key to watch for a breakout that may fuel further gains. Traders should monitor volume and momentum indicators for signs of continuation or potential reversals.

Today’s economic calendar features no major direct data releases from the UK or US that would impact GBPUSD significantly. However, the New York Empire State Manufacturing Index due at 14:30 GMT+1 is expected to show a decline, which if confirmed could weaken the USD and indirectly benefit GBPUSD. Japanese early morning economic releases are unlikely to sway the pair noticeably today. Thus, overall, the day lacks significant direct economic triggers for GBPUSD; trading will likely follow technical cues and broader market sentiment.

Resistance & Support

Run a Live GBPUSD Analysis

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