FX.co ★ GBP/USD

GBP/USD During the early hours of Wednesday’s Asian trading session, the GBP/USD currency pair slipped to approximately 1.3250, marking a continuation of the downward momentum witnessed on Tuesday. While the pair made a modest recovery afterward, the rebound was curtailed by weaker-than-expected Purchasing Managers’ Index (PMI) figures out of the UK. This disappointing economic data acted as a ceiling for any substantial gains. Market sentiment remains sensitive to geopolitical developments, and price action continues to reflect a cautious optimism tempered by economic fundamentals and policy-related uncertainty. Across the Atlantic, U.S. President Trump once again captured global attention with conciliatory remarks toward China and the Federal Reserve, momentarily overshadowing concerns like the International Monetary Fund’s downward revision of its global growth forecast. This shift in sentiment spurred a brief rally in European markets, notably the DAX, where traders speculated on a potential pivot in U.S. trade policy.

The broader market mood is slowly transitioning from bearish to cautiously optimistic, particularly in New York, where a recovery could be on the horizon if supportive developments continue. However, the risk of abrupt downturns remains, especially if fresh, disruptive comments emerge from the White House. Technically, the pair finds immediate support at the 50-day Simple Moving Average (SMA) around the 1.3260 mark, followed by lower support levels at 1.3200 and 1.3090. Resistance lies to the upside at 1.3340, with further hurdles expected near the psychologically important 1.3400–1.3410 zone and then at 1.3460. Technically, the 4-hour chart reveals that while bullish momentum has slowed, there is no clear sign of a reversal yet. Overbought signals are starting to emerge, and the 200-period SMA has leveled out, posing a resistance zone around 1.3260. Still, the longer-term bullish bias persists, suggesting that deeper declines might be limited unless triggered by significant market shocks.