After turning lower from its 2025 highs, GBP/USD is fast approaching potential support zones.
Will the pair see enough demand at the levels to extend its current uptrend?
Let’s check out the 4-hour chart for clues:
GBP/USD 4-hour Forex Chart by TradingView
The British pound has shown impressive resilience against the U.S. dollar, even as the Greenback flexed its strength across major currencies. Traders seem to be banking on a positive outcome from the Trump-Starmer meeting, where the U.K. could secure favorable trade terms or dodge the tariffs hitting other US trading partners.
The upcoming US PCE inflation report could add more fuel to a GBP/USD rally if it shows cooling inflation. Softer data might speed up the Fed’s rate cut timeline, potentially broadening dollar weakness.
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 U.S. dollar and British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/USD, which has recently turned lower from its 2025 highs near 1.2700, is now trading just under the 1.2600 mark.
Several support factors line up at current levels. The 1.2570 area, for example, lines up with the S1 (1.2570) Pivot Point line and the 38.2% Fibonacci retracement of February’s upswing.
Meanwhile, the 1.2500 psychological handle sits close to the S2 (1.2509) Pivot Point line, 100 SMA, and the 50% Fibonacci pullback on the 4-hour time frame. More importantly, it’s near the ascending channel support that’s been around since mid-January.
Look out for consolidation candlesticks and signs of bullish demands at these levels, as signs of bullish momentum could draw in buying pressure and extend GBP/USD’s 2025 uptrend.
On the other hand, bearish candlesticks and extended downswings can put GBP/USD in a position to trade below the key 1.2500 levels. In this scenario, look out for consistent trading below the channel and the 200 SMA, which could lead to retests of the 1.2400 major psychological handle if not the 1.2300 previous lows.
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!
