Economic Calendar
Elevated volatility may persist considering fundamental data releases and UK Treasury market volatility.
GBP/USD hourly chart analysis
GBP/USD hourly chart shows the pair trading within a broader downtrend, as price remains below the 200-period moving average, which is sloping downward and acting as long-term resistance. This suggests that the overall market bias is still bearish.
In the short term, price recently bounced from the 1.3350 support area and is attempting a modest recovery. However, the pair is currently trading around the 50 and 100 moving averages, which are close together and indicate weak momentum and consolidation rather than a strong trend. This means the upside movement is likely corrective rather than a full reversal.
Immediate resistance is located around 1.3420–1.3450, where the 50-period moving average and previous price structure are positioned. If the pair fails to break above this area, selling pressure could return and push the price back toward 1.3330, with a deeper move potentially targeting 1.3280.
Hourly Chart
UK-10 Year Gilt analysis
UK 10‑Year Gilt shows a sharp shift in market sentiment. Earlier in February 2026, gilt prices were rising because investors expected several interest rate cuts from the Bank of England. However, the situation changed quickly when tensions escalated in the Middle East, particularly involving Iran. The conflict pushed oil prices above $100 per barrel, increasing fears of higher inflation in the UK.Technically, the move down is very steep, with several large bearish candles in a row. This suggests strong selling pressure and a lack of buyers during the decline. The price is now trading close to the important 90.00 support level.