# GBP/USD Forex Signal: Bullish Momentum Stalls Near 1.2920 as Dollar Recovers
*By: DailyForex.com Analyst Team*
The GBP/USD currency pair has been trading in a broad range this week, with the US dollar showing renewed strength against the British pound after an extended run higher in previous sessions. The forex market has responded to a mixed set of economic data from both the UK and the US, as well as shifting expectations around central bank policy and global risk appetite.
Since the beginning of July, GBP/USD has found strong support above the 1.2760 zone, with buyers driving the pair up toward the 1.2920 region before sellers moved in and pushed prices lower. Although bullish momentum has largely dictated recent price action, the pair’s inability to sustain gains above the 1.2900 psychological level suggests that the bulls could be running out of steam.
In this in-depth technical analysis, we will examine the key factors influencing GBP/USD, highlight notable chart patterns, and provide actionable Forex trading signals for short- and medium-term traders.
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## Key Market Drivers for GBP/USD
Several important factors are shaping the near-term outlook for the pound-dollar currency pair:
– **Softening Inflation in the UK:** UK CPI data released last week showed a further cooling in consumer prices, adding to market speculation that the Bank of England (BoE) could move toward rate cuts before year-end.
– **US Economic Surprises:** US Non-Farm Payrolls (NFP) for June came in softer than expected, but wage growth ticked higher, supporting the dollar. Other economic releases, such as ISM data, have signaled mixed economic momentum.
– **Central Bank Policy Divergence:** The Federal Reserve and BoE are both cautious in signaling their next policy moves. Any hints about future rate changes are likely to drive volatility in GBP/USD.
– **Market Sentiment and Risk Appetite:** Global risk trends continue to influence demand for the US dollar, with safe-haven buying supporting the greenback when risk aversion spikes.
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## Technical Analysis: GBP/USD
### Daily Chart Analysis
The daily chart shows that GBP/USD rallied strongly in late June from the 1.2610 zone, breaking through several key resistance levels and peaking just above the 1.2915 area. However, the pair has since failed to hold above 1.2900, with sellers stepping in to cap upside moves.
– **Support Levels:** The immediate support area is found at 1.2810, coinciding with the ascending trendline that has been in place since the start of July. A deeper pullback could target 1.2760, which aligns with the 21-day EMA and previous range resistance.
– **Resistance Levels:** The 1.2920 area remains the crucial upside barrier, with further resistance at 1.2970 and the psychological 1.3000 level.
– **Technical Indicators:** The RSI indicator on the daily chart is hovering just below overbought territory, suggesting the pair is vulnerable to a short-term pullback. The MACD is still in bullish territory, but momentum has flattened.
### Hourly Chart and Short-Term Setups
Zooming into the hourly timeframe, GBP/USD price action is consolidating in a tight channel between 1.2860 and 1.2920. Bulls have repeatedly attempted to breach the 1.2900 area but have so far been unsuccessful.
– **Immediate Support:** 1.2860 holds as near-term support, followed by 1.2810.
– **Breakout Watch:** A break below 1.2810 would open the door for a test of 1.2760, while a move above 1.2920 could attract new buyers and challenge the next resistance at 1.2970.
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## GBP/USD Trading Signals for 10 July 2025
Considering the prevailing technical setup and the risk-reward
Read more on GBP/USD trading.