FX.co ★ GBP/USD

The GBP/USD pair received strong buying support for the second consecutive day, extending its upward momentum and reaching a one-week high during the Asian trading session, while the US dollar weakened more broadly. Spot prices hovered around 1.3275, up slightly by about 0.15% on the day. Market participants are closely watching the upcoming US Consumer Price Index (CPI) data. Alongside the CPI, traders are also gearing up for the US Producer Price Index (PPI) data on Thursday and Federal Reserve Chair Kevin Warsh's highly anticipated speech at the International Monetary Fund and World Bank Annual Meetings in Bangkok on Friday. These macroeconomic data releases and central bank speeches are expected to provide clearer indications of the Fed's ultimate interest rate path, which will influence near-term currency movements and inject crucial upward momentum into major currency pairs. Meanwhile, benchmark US Treasury yields retreated from multi-year highs, putting downward pressure on the US Dollar Index (DXY) and pulling it away from its highest level since April 2025. However, market expectations of another Federal Reserve interest rate hike in December remain, along with ongoing geopolitical uncertainty along key global supply routes, providing strong support for the US dollar as a safe haven and effectively limiting the potential for a pound rally. From a four-hour chart perspective, the price remaining above the 100-period exponential moving average (EMA) reinforces the technical case for a sustained intraday rally. The Moving Average Convergence Divergence (MACD) indicator confirms this positive trend, turning bullish as the chart bars widen, suggesting that as long as the spot price remains within the dynamic EMA support range, buyers will maintain their short-term momentum. Momentum indicators, such as the four-hour Relative Strength Index (RSI) nearing 64.78, suggest that strong buying pressure is approaching overbought territory, implying that any further upward attempts could encounter strong resistance. Therefore, any further gains are likely to face initial technical resistance near the 23.6% Fibonacci retracement level at 1.3298, followed by resistance near the 38.2% Fibonacci retracement level at 1.3371, and then the 50.0% Fibonacci retracement level at 1.3429. On the downside, key structural support lies at the Fibonacci level near 1.3181, where long-term market participants are expected to defend the overall recovery structure. Conversely, a break below this key support would invalidate the current bullish pattern, reactivate bearish momentum, and open a technical path for a prolonged decline from the August highs near 1.3675.