- GBP/USD added to the overnight strong move up and gained traction for the second straight day.
- The intraday uptick stalled near a resistance marked by the top end of an ascending trend channel.
- The set-up seems titled in favour of bullish traders and supports prospects for an eventual breakout.
The GBP/USD pair shot to fresh three-month tops during the mid-European session, albeit quickly retreated few pips thereafter. The pair was last seen trading just below the 1.4200 mark, nearly unchanged for the day.
Following a brief consolidation through the first part of the trading action on Friday, the pair turned positive for the second consecutive session and built on the overnight strong move up. The US dollar struggled to gain any meaningful traction and languished near multi-month lows. This, along with mostly upbeat UK macro data, provided a modest lift to the GBP/USD pair.
Looking at the technical picture, the intraday uptick stalled near a resistance marked by the top boundary of a short-term ascending channel extending from lows touched in March and April. The mentioned barrier, currently around the 1.4235 region, coincides with YTD tops touched on February 24. This, in turn, should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and are still far from being in the overbought territory. The technical set-up seems tilted firmly in favour of bullish traders and supports prospects for an eventual breakout to the upside. That said, bulls might still wait for a sustained move beyond the 1.4235 area before placing fresh bets.
The GBP/USD pair might then aim to reclaim the 1.4300 round-figure mark and prolong the upward trajectory further towards 2018 yearly tops, around the 1.4375 region.
On the flip side, the daily swing lows, around the 1.4170-65 region now seems to protect the immediate downside. Sustained weakness below might turn the GBP/USD pair vulnerable to accelerate the fall back towards the 1.4100 mark. This is followed by weekly lows, around the 1.4075 region, which if broken will negate the constructive outlook and prompt some technical selling.
GBP/USD daily chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

AUD/USD holds lower ground below 0.6350 after dismal Australian data
AUD/USD keeps its offered tone intact below 0.6350 in Wednesday's Asian trading, undermined by below forecasts Australian Constuction Output and monthly CPI data. The data fan more RBA rate cut expectations. Risk-off flows and renewed US Dollar demand also add to the weight on the Aussie.

USD/JPY: Rebound gathers steam to near 149.50
USD/JPY is extending the rebound to near 149.50 in Asian trading on Wednesday. The pair tracks the upswing in the US Dollar and the US Treasury bond yields, fuelled by the US House passage of the Republican Budget plan, advancing Trump's tax plans.

Gold buyers jump back amid tariff uncertainty
Gold price struggles to build on Tuesday’s rebound in the Asian session on Wednesday. Gold buyers try their luck as safe-haven flows return on US President Donald Trump’s tariff uncertainty and weak US economic prospects.

Strategy stock dips as Bitcoin price crashes below $90K, sparking concerns of forced liquidation
Strategy witnessed an 11% stock decline on Tuesday, stirred by Bitcoin's market's plunge below $90,000 and fueling speculations of a forced liquidation for the company.

Five fundamentals for the week: Fallout from German vote, Fed's favorite figure stand out Premium
Statements, not facts, are set to dominate the last week of February. Further fallout from Germany's elections and new comments from Trump on trade may overshadow most figures –but not the Fed's favorite inflation figure.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.