FX.co ★ GBP/USD

TECHNICAL ANALYSIS OF GBP/USD PAIR. On the GBP/USD H1 chart, the pair is currently trading around 1.35317, and the technical structure has shifted from a strong bullish phase into a corrective bearish formation. Price previously advanced steadily from the 1.3300 area and established a series of higher highs and higher lows, eventually reaching the 1.36490–1.36600 resistance zone. However, the latest price action shows a clear loss of bullish momentum: after consolidating near 1.3640, GBP/USD formed lower highs and began declining beneath the short-term moving average. The red moving average, which had supported the earlier uptrend, has now turned downward, while price has also broken below the blue moving average and is testing the green longer-term moving average region. The latest H1 candles have pushed decisively toward 1.3530, demonstrating increasing selling pressure and suggesting that sellers are attempting to convert the former bullish structure into a deeper correction. The immediate support zone is 1.3520–1.3530, followed by the important psychological level at 1.3500. A sustained H1 close below 1.3520 would strengthen the bearish case and expose 1.34770 as the next technical objective, while a deeper extension could target 1.34340, where previous price activity provides additional structural support. On the upside, the first resistance is located around 1.3555–1.3565, close to the moving-average cluster and the recent breakdown area. Above that, 1.3580–1.3600 becomes the next supply region, while 1.36060 is a crucial resistance level because reclaiming it would indicate that the recent bearish breakdown may have been a false move. From a fundamental perspective, GBP/USD remains highly sensitive to expectations surrounding the Bank of England and Federal Reserve, particularly interest-rate differentials, inflation developments, employment data, economic growth, and changes in U.S. Treasury yields. Any hawkish repricing of U.S. monetary policy can support the dollar and pressure GBP/USD, whereas softer U.S. data or more dovish Fed expectations could generate a recovery in sterling. Therefore, traders should monitor upcoming UK and U.S. economic releases because volatility around these events can invalidate short-term technical setups.

From a trading perspective, the preferred strategy is currently bearish, but selling directly into 1.3530 support carries elevated risk because the pair could produce a technical rebound from this area. A higher-probability setup would be to wait for an H1 candle to close below 1.3520, followed by a controlled retest of 1.3520–1.3540 from underneath. If this former support becomes resistance and bearish rejection appears, a short entry around 1.3530–1.3540 would provide a technically attractive setup. An alternative aggressive entry can be considered near 1.3550–1.3560 if price rebounds into the moving-average resistance zone and produces a clear bearish rejection candle. For the primary short setup, a protective stop-loss around 1.3590 is reasonable, positioned above the immediate resistance and below the more significant 1.3606 invalidation area. The first take-profit target is 1.3500, the key psychological level; once price reaches this zone, partial profits can be secured and the stop-loss can be moved toward breakeven. The second target is 1.34770, followed by 1.34340 if downside momentum accelerates. The risk-to-reward profile becomes particularly attractive if the entry is obtained after a confirmed breakdown and retest rather than chasing the initial sell-off. Volume on the chart shows noticeable activity during the latest decline, supporting the interpretation that the breakdown deserves attention, although traders should seek confirmation from subsequent H1 candles rather than relying on a single move. If buyers reclaim 1.3565 and establish consecutive H1 closes above it, bearish pressure would weaken; a recovery through 1.3580–1.3600 would further challenge the short thesis. A decisive H1 close above 1.36060 would invalidate the immediate bearish setup and could reopen the path toward 1.36490–1.36600. Conversely, failure to recover the moving-average cluster and a clean break beneath 1.3500 would confirm that sellers remain in control and could accelerate the move toward 1.34770 and potentially 1.34340. Overall, the chart favors selling rallies or confirmed breakdown-retests, with disciplined position sizing, strict risk control, and confirmation around major economic announcements essential for managing GBP/USD’s volatility.