British Pound / U.S. Dollar
Long
Updated

GBPUSD – Holding the Uptrend, Eyeing Resistance Breakout

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The GBPUSD pair continues to respect a well-defined ascending channel on the H4 chart. Each time price retraces to the lower boundary, buying pressure has consistently stepped in. Currently, price is hovering near the channel’s lower edge and the EMA89 – forming a technical support area around 1.35370. If this zone holds, there is a strong potential for a rebound toward the resistance zone near 1.36100–1.36300, which has rejected price twice before.

From a news perspective, markets are awaiting the U.S. CPI report tomorrow. If inflation data comes in weaker, expectations for the Fed to cut interest rates will increase, putting pressure on the USD and allowing GBP to extend gains. Additionally, the Bank of England is expected to maintain a more hawkish stance due to persistent domestic inflation – which further supports the pound’s upward momentum.

Watching the EMA and lower channel boundary is key. If a clear bullish signal forms at this zone, a trend-following long strategy could carry a high probability of success.
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