GBP/USD has been climbing steadily since the start of the year, but 1.3600 is proving to be a tough ceiling for fresh 2025 highs.
Will pound bulls find enough support to make another run at the resistance?
GBP/USD 4-hour Forex Chart by TradingView
Sterling is holding up better than commodity-linked currencies this month, as the US dollar gives back some gains amid easing trade tensions and softer US growth concerns.
U.K. jobs reports this week are expected to show only minor weakness for May, and a lineup of mid-tier reports could help extend the pound’s short-term trends.
Meanwhile, the dollar’s path may hinge on how markets react to the latest U.S.-China trade headlines and the upcoming U.S. CPI release.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/USD has been grinding higher in an ascending triangle since late May, but the 1.3600 handle is still acting as a ceiling.
The rising trend line support remains intact for now, aligning with the 1.3529 Pivot Point.
Will the bulls break above resistance or lose steam at the trend line?
Green candlesticks and sustained gains beyond the 1.3600 area of interest open GBP/USD to a trip to the 1.3700 psychological handle near the R2 1.3699 Pivot Point.
But if the pair drops below trend line support, GBP/USD may retreat toward the 100 SMA near 1.3500 or even the S1 support around 1.3342, a former area of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
