Cable looks ready to extend a short-term uptrend!
Think GBP/USD will see new December highs in the next trading sessions?
Here’s what we’re seeing on the 4-hour time frame:
GBP/USD 4-hour Forex Chart by TradingView
Friday’s soft U.K. GDP print pushed traders to lean more heavily toward a dovish Bank of England (BOE) rate cut later this week.
The U.S. dollar was not exactly flexing either, as markets continued to price in more rate cuts in 2026 than the Fed’s dot plot suggests. Still, with top-tier market events ahead, caution crept back in and kept safe-haven demand for the dollar alive at the start of the week.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie 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 making higher highs and higher lows since bouncing off the 1.3050 psychological area in late November. That rebound set the tone for a steady uptrend that has stayed intact so far.
After getting turned away from the 1.3450 resistance zone, the pair now looks headed toward a test of the 1.3350 area. This level matters because it lines up with the Pivot Point and 50% Fibonacci retracement of last week’s upswing. Just as important, it sits close to the rising trend line that has been supporting Cable throughout this move higher.
If buyers step back in and we see bullish candles along with sustained trading above 1.3400, GBP USD could be gearing up for another run at 1.3450. A clean break above that area could even open the door to fresh December highs. That said, the big 1.3500 level looms overhead and could attract sellers looking to fade the move.
On the flip side, a string of red candles and a clear break below 1.3350 and trend line support could set the tone for a bearish run. That kind of downside follow-through could pull GBP/USD toward 1.3300 and possibly down to the 1.3250 area, where buyers may try to regroup.
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.
