**The GBP/USD Resumes the Rise – In-Depth Analysis (24-07-2025)**
*Original analysis credited to Economies.com*
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**Introduction**
The GBP/USD currency pair continues to attract significant attention from traders and investors worldwide, reflecting both the shifting dynamics of the global economic environment and the interplay of fundamental and technical factors driving foreign exchange markets. As of July 24, 2025, the GBP/USD pair has exhibited renewed bullish momentum, breaking some key resistance levels and presenting new opportunities and considerations for market participants. This article provides a comprehensive analysis of the recent movements in GBP/USD, delves into the underlying factors behind its resurgence, and sheds light on possible future scenarios.
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**Summary of Recent Price Action**
Over the past several weeks, the pound sterling (GBP) against the United States dollar (USD) has been trading within a defined channel, characterized by periods of consolidation and upward breakouts. After testing a series of support zones, the pair regained strength and moved higher, signaling a resumption of bullish sentiment.
Key highlights of the GBP/USD price activity include:
– Recovery from recent dips near psychological support levels
– Breakout above intermediate resistance lines
– Sustained buying interest as risk appetite returned to the forex markets
– Relatively higher volatility fueled by shifting macroeconomic narratives
This recent move upwards is not purely technical; macroeconomic developments in both the UK and US, alongside global market sentiment, have played significant roles in shaping the trajectory.
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**Key Technical Analysis**
A detailed look at the GBP/USD technical setup provides insight into bullish signals, support and resistance levels, momentum indicators, and what to monitor next.
**Support and Resistance Levels**
– **Immediate support**: The pair found strong support around 1.2780, which has acted as a launchpad for the current upward movement.
– **Short-term resistance**: After breaking above 1.2870, bullish traders now target the next resistance zone near 1.2950.
– **Medium-term resistance**: If the rally sustains, attention will shift towards the psychological level of 1.3000, a round number that often attracts both profit-taking and fresh orders.
– **Secondary support**: If a retracement occurs, look for potential buying interest to emerge around 1.2820.
**Trendlines and Moving Averages**
– The pair is trading above its 50-period and 200-period moving averages, reinforcing the bullish outlook.
– The upward slope of these averages indicates ongoing momentum in favor of the bulls.
– An established ascending trendline from recent lows provides a tactical reference point for buyers.
**Momentum Indicators**
– The Relative Strength Index (RSI) has moved into positive territory, signaling a shift from oversold to overbought conditions, but remains below extreme levels, suggesting room for further upside.
– MACD (Moving Average Convergence Divergence) has crossed above its signal line, pointing to a continuation of buying pressure.
**Price Patterns**
– The recent breakout can be interpreted as the completion of a bullish flag pattern, which often precedes further upward extensions in the prevailing trend.
– Candlestick formations on the daily chart reflect sustained interest from the buy side, with strong closes above key levels.
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**Fundamental Drivers**
The fundamental landscape provides the foundation upon which technical patterns play out. Both UK and US economic data, as well as central bank policy stances, have had a marked impact on GBP/USD performance.
**1. Bank of England (BoE) Monetary Policy**
– The BoE has signaled a cautious approach to interest rate adjustments, balancing inflation targeting with concerns over economic momentum.
– Recent communication from policymakers suggests the possibility of maintaining current rates for a prolonged period, favoring currency stability.
– Market participants anticipate the next BoE meeting with high interest, as any hawkish or dovish tilts may trigger pronounced reactions in GBP/USD.
**2. UK Economic Data**
– UK inflation printed marginal
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