GBP/USD Technical Analysis. The GBP/USD pair has been moving in an upward trend since mid-May, accelerating its upward trend supported by the break of important resistance levels, coupled with a slight weakness in the dollar’s performance. With the US market entering its fourth week, markets are awaiting Federal Reserve data that could change the course of trading, but so far, the pair is maintaining its gains.
Technical Overview of the GBP/USD Pair
The price action of the GBP/USD pair reflects a clear short-term buying bias, having surpassed the 1.3350 and 1.3384 levels, while remaining above the 50- and 100-hour moving averages. The price is now retesting the 1.3384 area as a support level after breaching it, a crucial area to determine the continuation of the uptrend.
Technical Indicators Analysis:
Moving Averages: The price is moving above the short- and medium-term moving averages, indicating stable upward momentum.
The MACD indicator: continues to register positive momentum with a bullish divergence, providing support for holding above 1.3384.
The Stochastic indicator: is in the overbought zone, with a potential for a limited correction before resuming the uptrend.
GBP/USD Technical Analysis : Expected Scenarios
Bullish Scenario:
If it holds above 1.3384, the path is open for the pair to rise towards 1.3408 as nearby resistance, then targeting 1.3438 as a pivotal resistance area for this week.
Bearish Scenario:
- If the 1.3384 level is broken downward, the price may face downward pressure towards the support level of 1.3351. A break of this level will open the way for further correction towards 1.3321.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | GBPUSD |
| 1.34081 | 1.33894 | Entry point |
| First resistance: 1.34388 | First support: 1.33597 | Target Point 1 (TP1) |
| Second resistance 1.34688 | Second support 1.33297 | Target Point 2 (TP2) |
| 1.33894 | 1.34081 | Stop Loss (SL) |
Stabilization above 1.3384 supports the continued positive momentum of the GBP/USD pair, with a potential test of 1.3438 in the short term if US data falls below expectations. On the other hand, any decline below 1.3351 could push the pair back to deeper support levels. It is best to follow the reaction to the upcoming FOMC minutes this evening to make informed decisions. Impactful
Impactful Economic Data – Tuesday, May 21, 2025:
- 🇺🇸 US Federal Reserve (FOMC) Meeting Minutes – 9:00 PM Mecca Time.
- 🇬🇧 There are no impactful UK data releases today, making the pair’s movements more closely linked to the US dollar and global geopolitical events.
