GBP/USD Price Forecast: Fits fresh monthly high as bulls retain control above 1.3265

Source Fxstreet
  • GBP/USD scales higher for the second straight day amid the ongoing USD retracement slide.
  • BoE Governor Bailey’s hawkish remarks and strong UK GDP print contribute to the move up.
  • The overnight breakout above the 1.3265 confluence backs the case for further appreciation.

The GBP/USD pair attracts some follow-through buyers for the second straight day on Friday, recovering further from the year-to-date low, around the 1.3135 region, touched earlier this week. The momentum lifts spot prices to the 1.3325 area, or a fresh monthly peak during the early European session, and is supported by a combination of factors.

Despite hot US inflation figures, investors seem convinced that the Federal Reserve (Fed) will keep rates unchanged at the next policy meeting, later this month. Expectations were reaffirmed by Fed Chair Kevin Warsh's neutral remarks earlier today, which, along with the recent sharp decline in US bond yields, dragged the US Dollar (USD) to a one-and-a-half-week low. The British Pound (GBP), on the other hand, continues to be underpinned by hawkish remarks from Bank of England (BoE) Governor Andrew Bailey and stronger UK Gross Domestic Product (GDP) data, which further contributes to the bullish tone surrounding the GBP/USD pair.

From a technical perspective, the overnight breakout through the 1.3260-1.3265 confluence – comprising the 100-period EMA on the 4-hour chart and the 23.6% Fibonacci retracement level of the August-October decline – was seen as a key trigger for bullish traders. Moreover, momentum indicators validate the constructive outlook. The Relative Strength Index (RSI) is hovering around 64, and the Moving Average Convergence Divergence (MACD) is turning increasingly positive, which together suggest that buyers retain control. This backs the case for a further near-term appreciation move for the GBP/USD pair in the absence of any relevant macro data.

Meanwhile, immediate resistance aligns at the 38.2% Fibo. retracement at 1.3343, followed by the 50.0% retracement near 1.3406 and the 61.8% level at 1.3468, where bullish progress could start to slow. On the downside, initial support is seen at the 100-period EMA and the 23.6% Fibo. retracement confluence, around 1.3265, while a deeper setback would expose the structural floor around the 1.3140 anchor.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

GBP/USD 4-hour chart

Chart Analysis GBP/USD

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.17% -0.25% 0.05% -0.13% -0.56% -0.75% -0.21%
EUR 0.17% -0.10% 0.20% 0.02% -0.37% -0.60% -0.05%
GBP 0.25% 0.10% 0.32% 0.14% -0.29% -0.49% 0.05%
JPY -0.05% -0.20% -0.32% -0.16% -0.60% -0.76% -0.25%
CAD 0.13% -0.02% -0.14% 0.16% -0.42% -0.67% -0.09%
AUD 0.56% 0.37% 0.29% 0.60% 0.42% -0.20% 0.36%
NZD 0.75% 0.60% 0.49% 0.76% 0.67% 0.20% 0.56%
CHF 0.21% 0.05% -0.05% 0.25% 0.09% -0.36% -0.56%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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