Title:
**GBP/USD Price Forecast: Gains Momentum, First Upside Barrier Emerges Near 1.3550**
*Based on analysis by FXStreet and originally published by Anil Panchal.*
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## Introduction
The GBP/USD currency pair has shown renewed momentum as the market begins to digest the evolving macroeconomic landscape. After a period marked by volatility and uncertainty, especially in light of recent economic data and geopolitical factors, the cable is exhibiting a bullish tone. The latest price action confirms an upward trajectory, with analysts closely monitoring several key technical levels. According to Anil Panchal’s comprehensive FXStreet forecast, the first notable resistance has materialized around the 1.3550 zone.
This in-depth analysis will dissect the market drivers influencing GBP/USD, examine the pair’s technical outlook, and provide insights for the near-term. Additionally, it will explore potential risk scenarios and present essential strategies for traders.
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## Fundamental Drivers Fueling GBP/USD Momentum
The recent rally in GBP/USD is being shaped by a confluence of macroeconomic elements. The interplay between economic prints from the United States and the United Kingdom, policy stances from both the Federal Reserve and the Bank of England, and broader market risk sentiment all play vital roles. Key themes currently impacting GBP/USD include:
### 1. Central Bank Policy Divergence
– The US Federal Reserve has maintained a cautious approach, retaining a higher-for-longer interest rate narrative to combat persistent inflation.
– Meanwhile, the Bank of England faces its own inflationary pressures but has been more dovish in recent meetings, with economic uncertainties looming over further rate hikes.
– Divergent central bank paths have led to oscillating risk appetite, periodically strengthening or weakening the US dollar against the British pound.
### 2. US Economic Data
– Recent releases such as the US Consumer Price Index (CPI) and employment data have been mixed, prompting a recalibration of dollar positions.
– Downgraded economic growth projections and softening job numbers have put downward pressure on the greenback.
– Market participants are increasingly attentive to forward-looking data to gauge the timing of potential Fed pivots.
### 3. UK Economic Resilience
– The British economy, while grappling with cost-of-living crises and wage stagnation, has exhibited resilience in consumer spending and services.
– UK GDP numbers, retail sales, and Purchasing Managers’ Index (PMI) readings have come in better than feared, providing temporary uplift to sterling.
– Political stability concerns, such as ongoing Brexit impasses and fiscal policy debates, remain a wild card but have not yet overshadowed positive economic prints.
### 4. Geopolitical and Global Risk Sentiment
– Global risk appetite remains fragile, as markets weigh geopolitical headlines from Eastern Europe and the Middle East.
– Shifts in risk sentiment often translate into demand for safe-haven currencies like the dollar, at the expense of riskier assets like sterling.
– As tensions persists, currency markets respond with heightened volatility, creating trading opportunities.
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## GBP/USD Technical Analysis
The technical setup for GBP/USD forms the backbone of the current bullish bias. Focusing on price action, momentum indicators, and key support/resistance levels, the near-term picture by Anil Panchal is particularly instructive.
### 1. Current Price Action
– GBP/USD has logged a decisive move upwards after finding a solid base around the 1.3430 threshold.
– The pair’s recent higher high and higher low pattern supports a constructive view.
– The bullish engulfing candlestick on the daily chart underscores buyer control at this stage.
### 2. Immediate Resistance and Support Zones
– **First Upside Barrier:** The next significant resistance is identified near the 1.3550 mark. A clear break here could open the door for further advances towards 1.3600 and even 1.3650.
– **Primary Support Levels:** Key downside support rests at 1.3480, followed by
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