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The GBP/USD pair posted a sharp rally yesterday, buoyed by positive growth data for the first time in three months, climbing to its highest level near the psychological barrier of 1.3600.
Technical Outlook – 4-hour timeframe:
The pair’s stability above the simple moving average, which aligns with the support zone near 1.3515, strengthens this area as a pivotal level. This is further supported by the presence of a steep ascending trend line that continues to guide price action higher. The Relative Strength Index (RSI) has also moved out of oversold territory, adding to bullish momentum and increasing the potential for further gains.
Likely Scenario:
As long as the price holds above the key support at 1.3515, the bias remains to the upside, with initial resistance at 1.3590, followed by 1.3630 as the next target. Conversely, a confirmed break below 1.3515, signaled by an hourly close, could trigger temporary downside pressure toward 1.3480, with losses potentially extending to 1.3440.
Fundamental Note:
Today’s session will feature high-impact US economic data, including retail sales, preliminary Michigan consumer confidence, and preliminary Michigan inflation expectations, all of which could trigger sharp price swings.
Warning: Risks remain elevated amid ongoing trade and geopolitical tensions, and all scenarios should be considered.
Disclaimer: Trading in CFDs carries inherent risks. The analysis provided herein is not a recommendation to buy or sell, but rather an interpretation of the current price movement on the chart.
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