FX.co ★ GBP/USD

GBP/USD H4 Outlook: Bulls Maintain Momentum While Market Awaits a Clear Direction Market Overview GBP/USD showed strong bullish activity at the end of last week, and buying pressure continued to strengthen during the previous session. At the same time, weakness in the euro has introduced some uncertainty into the broader market picture, making it difficult to determine which currency will lead the next major move. As a result, traders are closely watching key breakout levels for confirmation. Technical Analysis On the H4 chart, the pair is trading near the middle section of the volatility bands. The bands are gradually narrowing and moving closer together, which often reflects a period of consolidation before a larger price movement. Since the market has not yet established a clear trend, a strong test of either band could provide a more reliable directional signal. Recent bullish and bearish fractals have created important reference points for future price action. A confirmed breakout above the nearest upward fractal would strengthen the bullish case and could lead to a move toward the higher fractal target formed on June 18. On the downside, a break below the nearest bearish fractal would increase the probability of a decline toward the lower fractal level recorded on June 19. The Awesome Oscillator remains below the zero line but continues to show weakening bearish momentum. This behavior keeps the bullish scenario active. A move into positive territory over the next few sessions would provide stronger support for further gains, while renewed acceleration in the negative zone would favor sellers. Key Levels Support: 1.31827, 1.31617, 1.31242 Resistance: 1.32725, 1.33243, 1.34331 Buy Targets: 1.33243, 1.34331 Sell Targets: 1.31617, 1.31242 Trading Outlook The pair remains in a consolidation phase despite recent bullish momentum. A successful break above resistance could extend the upward trend, while a move below support may signal a return of selling pressure. Traders should wait for confirmation before committing to either direction.