Traders should watch key resistance levels around 1.3600. This price point represents the primary target for current bullish momentum. Before reaching this milestone, expect some resistance at 1.3585, which could trigger minor corrections. The pair has already surpassed important moving averages, including the 50-day and 100-day indicators – a technically bullish sign that shouldn’t be ignored!
Keep your eyes on the 1.3600 resistance – this bullish target looms large after GBP/USD conquered key moving averages!
What’s driving this action? The market is processing expectations for Federal Reserve rate cuts in Q4 2025. Though the U.S. dollar remains fundamentally strong due to a stable labor market, GBP has found renewed strength. Political uncertainty adds extra spice to this trading recipe, with potential U.S. trade policy developments keeping traders on their toes. Recent analysis shows the GBPUSD pair completed a growth wave from 1.2100 and is now in a consolidation range around 1.3790.
If you’re considering entry points, keep an eye on support levels around 1.3140 and 1.3060. A breach below these marks could signal further declines. For those already in bullish positions, the 1.3745-1.3980 range represents extended resistance worth monitoring.
The August trading range (1.3060-1.3600) has seen increased volatility near key levels. This suggests critical decision points are approaching! Wave analysis indicates continued upward momentum, with price action respecting the 23.6% Fibonacci retracement level at 1.3388. Technical analysis conducted by Rami Abu-Draa emphasizes combining fundamental and technical principles for high-probability trading opportunities. Beginners might consider applying the Pin Bar Strategy to identify potential reversals at these critical price levels.
Ready for action? Monitor upcoming mortgage data and Fed officials’ statements – they’ll likely influence near-term GBP/USD movements. The current setup offers exciting opportunities for traders willing to ride this wave of momentum!
