GBP/USD soars to 8 week high amid weaker dollar

GBP/USD continues to trade within a constructive medium-term uptrend, consolidating just below the 1.3600 level following a sharp upward extension. This sustained rally is primarily driven by persistent weakness in the US dollar across global forex markets. The next directional move will likely depend on whether resistance near recent highs is decisively breached.

A two-week ceasefire in the Middle East, along with expectations of hawkish interest rate policies from the Bank of England (BoE), has strengthened the British Pound. BoE policymaker Megan Greene stated on Tuesday that inflation risks appear greater than the risk of an economic downturn. The Bank of England is scheduled to announce its next interest rate decision on April 30.

GBPUSD hardly reacted to the robust UK GDP data

GBP/USD fell marginally from multi-week highs following the release of solid UK GDP data, as investors awaited clarity on the next steps in US-Iran peace talks. The UK GDP increased by 0.5% in February, the fastest rise since 2024. The data suggested the UK economy was gaining pace before the onset of violence in the Middle East, casting doubt on a quick recovery.

GBP/USD Technical Forecast

Technical charts suggest bullish momentum but face immediate resistance, requiring confirmation for a sustained breakout. However, the price continues to trade above both the 100-day and 50-day moving averages, which remain positively aligned. The Relative Strength Index (RSI) on the daily timeframe currently stands at 60, signaling bullish momentum without entering overbought territory.

For the remainder of the week, the daily chart remains biased to the upside, with further gains possible due to ongoing bullish pressure. As of this writing, GBP/USD trades near 1.3550. If bullish momentum persists, the pair is likely to test the psychological resistance at 1.3600 first; a break above this level could push the Pound toward the next key resistance zone at 1.3680–1.3700.

On the downside, immediate support is located around 1.3500, with the 100-day moving average near 1.3460 serving as the next key support level.

In summary, the short-term technical outlook remains supportive, and the British Pound has room to advance if upside momentum continues. Currently, the pair appears to be consolidating recent gains while encountering crucial resistance, but bulls remain in control and could drive prices higher following a pullback.

 

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