GBPUSD hits a 2-month high on a soft dollar and UK political developments
Pound Consolidates Gains
The sterling remains the strongest currency this week. However, after the sharp advance, the pair experienced a slight pullback due to profit-taking. Over the past few hours, GBP/USD has traded within a narrow range, showing limited directional movement. At the time of writing, the pair is trading around 1.3500. The market appears calm, though underlying volatility persists. The pound showed minimal reaction to robust economic data from the UK. The Office for National Statistics reported that the UK economy grew by 0.1% in May, aligning with economists’ expectations, following a 0.1% contraction in April.
GBPUSD Technical Forecast
The overall trend continues to be bullish, supported by substantial buying pressure observed in the last session. This is highlighted by the pair's breakout above the key resistance level of 1.3500. Given the current volatility, there is potential for the pair to revisit the recent peak near 1.3550 later this week. A break and four-hour close above 1.3550 would likely trigger renewed buying interest, targeting the 1.3580 resistance zone. On the downside, sellers should watch for a move below 1.3480, which could lead to a corrective decline toward the 1.3450–1.3440 support area.
Bottom Line:
Looking ahead, market participants are focusing on upcoming US retail sales data, which is expected to show a slightly dovish tone, as well as initial jobless claims scheduled for release later today. Retail sales data serves as a key indicator of consumer spending and provides insight into inflation trends. Stronger-than-expected figures could bolster the US dollar's momentum, while softer data may support GBP/USD in revisiting recent highs near 1.3550–1.3560.
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