Over the past 24 to 48 hours, the GBP/USD currency pair has shown notable volatility. The previous closing price stood at 1.33255, with the market reacting to weak US economic data alongside the UK budget announcement, which kept Sterling hovering around a five-week high.

Recent market news highlights that the US Dollar Index fell to around 99.20 as Fed rate-cut bets surged to 90%, resulting in continued dollar weakness and a stronger GBP/USD. Concurrently, the UK budget eased some investor concerns, boosting demand for the Pound. However, uncertainty surrounding the future path of interest rates on both sides led to elevated price fluctuations recently.

For the average investor, when the Fed signals potential rate cuts, the dollar tends to weaken, driving funds towards relatively attractive currencies like the Pound. Positive UK budget communication has improved sentiment, making investors more willing to hold GBP assets. If US economic data remains weak and UK policy stays steady, GBP/USD could maintain its upward momentum.

Daily Chart

The daily chart shows GBPUSD rebounding from recent lows and establishing a gentle upward trend. The price consolidates between the 50-day moving average (1.32266) acting as support and the 200-day moving average (1.34021) providing resistance overhead. Bollinger Bands are narrowing, indicating increased volatility and consolidation. The MACD suggests strengthening bullish momentum but no decisive breakout yet, indicating cautious optimism in the medium term.

1H Chart

On the hourly chart covering the past 3-5 days, GBPUSD has maintained a short-term upward trend but faces strong resistance around 1.3330. Short-term moving averages slope upwards, and the MACD formed a bullish crossover near the zero line, signaling continuing momentum. The Bollinger Bands are expanding with the upper band marking the near-term resistance zone; a decisive break above could signal further gains.

Technical Trend:  GBPUSD currently maintains a cautiously bullish consolidation phase, characterized by a moderate uptrend challenged by a strong resistance zone around 1.3330. Overall, the trend can be described as ‘cautiously bullish,’ with elevated short-term volatility.

Technically, GBPUSD’s immediate resistance near 1.3330 is critical for confirming further gains, supported by volume and momentum indicators. The daily chart’s consolidation appears as a triangle pattern awaiting breakout validation. Additionally, a recent bullish engulfing candlestick signals short-term buyers holding the edge. Traders should cautiously consider long positions near support while monitoring the resistance reaction closely.

Today’s economic calendar shows no significant or directly relevant data releases for GBPUSD. Japanese and EU data will be published early but will have limited impact on GBPUSD. Attention remains on upcoming UK inflation and US nonfarm payrolls that could affect the dollar’s trajectory and thus the GBPUSD pair volatility.

Resistance & Support

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