GBP/USD outlook

Source: Dukascopy Bank SA

FX pair closed higher, closing close to 1.33225.

Economic Calendar


Higher levels of volatility may persist through Fed interest rate decision.

GBP/USD hourly chart analysis

GBP/USD is currently in a corrective phase within a broader bullish trend, characterized by a Golden Cross alignment of moving averages where the 200-period SMA sits well below current price action. The market recently peaked at 1.3374 but has since retraced, slipping below the short-term 50-period green SMA, which is now acting as immediate dynamic resistance near 1.3340. Price is currently testing a crucial support confluence around 1.3310, where the orange 100-period SMA aligns with a horizontal support level; this area represents a high-probability buy zone where buyers are likely to defend the uptrend. If this 1.3310 support holds, a bounce back toward 1.3340 and potentially the 1.3374 highs is the most plausible outcome, but a sustained break below this floor would likely deepen the correction toward the major structural support at 1.3273 and the 200-period red SMA at 1.3265.

Hourly Chart

GBP/USD daily candle chart analysis

The pair is currently in a corrective phase within a broader bullish trend, characterized by a Golden Cross alignment of moving averages where the 200-period SMA sits well below current price action. The market recently peaked at 1.3374 but has since retraced, slipping below the short-term 50-period green SMA, which is now acting as immediate dynamic resistance near 1.3340.

Daily chart


Traders are long
GBP/USD is currently in a corrective pullback within a broader uptrend, testing a critical support zone near 1.3310 where the 100-period SMA aligns with previous market structure. This bullish potential is reinforced by a strong contrarian signal from the sentiment data, which shows that 62.41% of traders are short, suggesting the market is positioned for a potential squeeze higher. If buyers defend this 1.3310 level, the price is poised to rebound toward the 1.3340 resistance (SMA 50), whereas a failure here would open the path to the major trend support at 1.3265.



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