GBP/USD Price Forecast: Testing resistance at 1.3400 as bullish pressure grows

Source Fxstreet
  • GBP(USD extends gains for the second consecutive day to test resistance at the 1.3400 area.
  • UK CPI data added pressure on the BoE to hike interest rates in November.
  • Above 1.3400, the next upside target is a previous support area near 1.3480.

The British Pound (GBP) extends gains against the US Dollar (USD) on Wednesday after some hesitation in the early European session, as the positive impact from the hot consumer inflation figures was offset by the increment in public borrowing. GBP/USD bulls are pushing against the resistance area at 1.3400 after rallying nearly 2% from last week’s lows. 

UK Consumer Price Index (CPI) figures released earlier in the day revealed that inflation accelerated beyond expectations in September, fuelled by high energy prices. These figures have cemented expectations that the Bank of England will finally hike interest rates at its November 4 meeting.

The Pound, however, hesitated immediately after the news release, as the UK’s Public Sector Net Borrowing figures, released at the same time, showed that government debt increased at the highest pace in more than five years in September, mainly due to debt interest. These figures might have stirred old concerns about the UK’s public finances as Chancellor John Healey prepares the budget, which is due to be released next week.  

Technical Analysis: Above 1.3400, the next target is 1.3480


Chart Analysis GBP/USD

GBP/USD trades at 1.3389, maintaining a constructive bullish tone after confirming above the previous two weeks' horizontal range earlier this week. The 4-hour Relative Strength Index (14), at 69.14, hovers just below overbought territory, while the Moving Average Convergence Divergence (MACD) histogram remains modestly positive, together suggesting that upside momentum is strong although increasingly stretched in the near term.

Above 1.3400, bulls will aim for the August 13 and September 3 lows in the 1.3470 area, which is also the 61.8% Fibonacci retracement of the August-October bearish cycle. Further up, the September 9 high, near 1.3670, would come next.

Immediate support is at the 1.3300 area, Monday and Tuesday's lows and the top of the previous two weeks' channel. A clear break of that level puts bears back in control and brings the year-to-date lows, around 1.3140, back into focus.

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

Pound Sterling Price This week

The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.42% -0.67% -0.06% -0.51% -1.09% -0.62% -0.23%
EUR 0.42% -0.21% 0.37% -0.05% -0.58% -0.17% 0.22%
GBP 0.67% 0.21% 0.59% 0.17% -0.35% 0.05% 0.50%
JPY 0.06% -0.37% -0.59% -0.43% -1.01% -0.55% -0.04%
CAD 0.51% 0.05% -0.17% 0.43% -0.58% -0.07% 0.33%
AUD 1.09% 0.58% 0.35% 1.01% 0.58% 0.40% 0.82%
NZD 0.62% 0.17% -0.05% 0.55% 0.07% -0.40% 0.44%
CHF 0.23% -0.22% -0.50% 0.04% -0.33% -0.82% -0.44%

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.
placeholder
Oil’s Return to $110 Boosts Fed Hike Expectations, Pressuring Gold for Fourth Day Toward $4,100On October 21, gold prices continued their adjustment, with gold (XAUUSD) dropping intraday to as low as $4,106, nearing the $4,100 mark and marking its fourth consecutive trading day of
Author  TradingKey
11 hours ago
On October 21, gold prices continued their adjustment, with gold (XAUUSD) dropping intraday to as low as $4,106, nearing the $4,100 mark and marking its fourth consecutive trading day of
placeholder
Housing starts fell to the second-lowest since the pandemic shutdown — with the 10-year at 5.12%, who is left to buy?US housing starts dropped 5.2% to 1.221 million in September, the second-lowest pace since the 2020 pandemic shutdown, and building permits hit a three-and-a-half-year low of 1.400 million. Both figures are worse than they look because July and August were revised up. With the 10-year Treasury at 5.117% — only 19bp below its October 5 peak of 5.311% — and the NAHB builder confidence index at 2012 levels, here are the three numbers, the transmission chain from rates to permits, and the two scenarios into the October 28 FOMC.
Author  Irene Q.
13 hours ago
US housing starts dropped 5.2% to 1.221 million in September, the second-lowest pace since the 2020 pandemic shutdown, and building permits hit a three-and-a-half-year low of 1.400 million. Both figures are worse than they look because July and August were revised up. With the 10-year Treasury at 5.117% — only 19bp below its October 5 peak of 5.311% — and the NAHB builder confidence index at 2012 levels, here are the three numbers, the transmission chain from rates to permits, and the two scenarios into the October 28 FOMC.
placeholder
The Dow gained 500 points and the two AI names that matter fell after hours — Netflix's guide is the tellThe Dow closed 529.85 points higher at 52,495.88 (+1.02%) and the VIX fell 6.13% to 17.31, but the two stocks that carry the AI trade moved the other way after Tuesday's close: Netflix slipped to $64.74 (-5.8%) after guiding Q4 EPS of $0.67, below the street, while SpaceX jumped about 8% to near $160 on its first profit as a public company and revenue up 161%. Netflix is now below its 52-week low of $65.08. Here are the numbers, the $65 / $70 levels and the two catalysts that matter this week.
Author  Irene Q.
14 hours ago
The Dow closed 529.85 points higher at 52,495.88 (+1.02%) and the VIX fell 6.13% to 17.31, but the two stocks that carry the AI trade moved the other way after Tuesday's close: Netflix slipped to $64.74 (-5.8%) after guiding Q4 EPS of $0.67, below the street, while SpaceX jumped about 8% to near $160 on its first profit as a public company and revenue up 161%. Netflix is now below its 52-week low of $65.08. Here are the numbers, the $65 / $70 levels and the two catalysts that matter this week.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 21, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 21, 2026. Read on for the details.
Author  Mitrade
17 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 21, 2026. Read on for the details.
placeholder
Australian Dollar trades near monthly high, above 0.7000 as hawkish RBA offsets USD uptickThe AUD/USD pair trades with a positive bias for the fourth straight day, holding steady above the 0.7000 psychological mark during the Asian session on Wednesday and flirting with the monthly high it touched the previous day.
Author  FXStreet
17 hours ago
The AUD/USD pair trades with a positive bias for the fourth straight day, holding steady above the 0.7000 psychological mark during the Asian session on Wednesday and flirting with the monthly high it touched the previous day.
Related Instrument
goTop
quote