Currency Updates

GBP/USD Price Forecast: Bullish Momentum Holds as Long as 1.3550 Support Stays Intact

The British Pound is extending its gains against the US Dollar in early European trading on Monday, with GBP/USD approaching 1.3555, fueled by broad USD weakness. Uncertainty surrounding U.S. trade policy and weakening safe-haven flows into the Greenback have contributed to the pair’s bullish tone. Traders are now turning their attention to upcoming UK employment data, expected on Tuesday, for the next directional trigger.

From a technical perspective, the bullish trend remains intact while the pair trades above the 100-day Exponential Moving Average (EMA) on the daily timeframe. The Relative Strength Index (RSI) currently holds above the 60 level, suggesting that buyers are in control and that momentum is tilted to the upside.

Resistance and Support Levels to Watch

  • Immediate Resistance: 1.3650 – Upper Bollinger Band
  • Next Bullish Target: 1.3748 – January 13, 2022 high
  • Extended Resistance: 1.3834 – October 20, 2021 high

On the downside:

  • Initial Support: 1.3415 – May 29 swing low
  • Next Bearish Target: 1.3250 – Lower Bollinger Band
  • Key Support Level: 1.3110 – 100-day EMA

GBP/USD Outlook: Can Bulls Hold Control?

If GBP/USD breaks decisively above 1.3650, the pair may aim for the January and October 2021 highs. However, a drop below 1.3415 could put the bullish structure at risk, with further declines possibly extending toward the 1.3250–1.3110 zone.

Traders should monitor UK employment data and US inflation expectations, as both could significantly impact market sentiment and interest rate projections from the Fed and Bank of England.

Stay Updated with Daily Forex Pakistan.

Yasher Rizwan

Recent Posts

GBP/USD Outlook: Pound Strengthens Near 1.3450 Amid Dovish Fed Remarks and Mixed UK Jobs Data

GBP/USD edges higher toward 1.3450 as dovish Fed comments support the Pound, despite mixed UK…

2 days ago

Crypto Price Forecast: Bitcoin Eyes Record High, Ethereum Targets $4K, Ripple Soars to New Peak

Bitcoin approaches record highs, Ethereum targets the $4,000 mark, and Ripple (XRP) hits a new…

2 days ago

EUR/USD Rises Above 1.1600 as Fed Dovish Tone Eases Market Jitters

EUR/USD climbs past 1.1600 as the Fed’s dovish stance calms market nerves, boosting demand for…

2 days ago

EUR/JPY Forecast: Bullish Momentum Holds Above 100-Day EMA, But Overbought RSI Signals Caution

EUR/JPY holds above the 100-day EMA, maintaining bullish momentum, though overbought RSI levels suggest a…

2 days ago

Gold Price Forecast: Bullish Momentum Builds as XAU/USD Bounces Off Key Support

Gold (XAU/USD) rebounds off key support, with bullish momentum building as traders watch for further…

2 days ago

USD/JPY and AUD/USD Forecast: Central Bank Policies and US Sentiment in Focus

USD/JPY and AUD/USD remain sensitive to Fed and BoJ policy signals, while US market sentiment…

2 days ago