**GBP/USD Price Prediction: Pound Eyes 1.36 After Bullish Rebound and Key U.S. Data Ahead**
By Skerdian Meta, Lead Analyst at FX Leaders
*(Original analysis adapted and expanded from Skerdian Meta’s article at FXLeaders.com)*
—
### Overview
The British Pound (GBP) has seen an impressive resurgence against the U.S. Dollar (USD), as the GBP/USD pair rebounds from recent lows. This bullish momentum comes as investors weigh up the latest economic signals from both the UK and the US, with particular attention on a spate of key American data releases that could set the tone for the next major move. With the currency pair hovering close to the 1.3600 mark, the path ahead promises volatility, driven by central bank policy divergences, macroeconomic data, and sentiment shifts in global markets.
—
### GBP/USD: Recent Performance and Key Drivers
After weeks of range-bound action below the 1.3500 handle, the GBP/USD pair broke higher in recent sessions. This turnaround is rooted in a combination of improved risk sentiment, stabilization in UK fundamentals, and increasing bets that the Federal Reserve may soon reach a peak in its current tightening cycle.
#### Key Drivers of the Recent Rally
– **Softening US Dollar**: A cautious tone from the Federal Reserve, coupled with mixed US economic data, has weighed on the greenback, driving capital flows back into risk assets like the pound.
– **UK Economic Stabilization**: While growth prospects remain modest, a series of better-than-expected UK data prints, including resilient labor and services sectors, have offered support to Sterling.
– **Technical Breakout**: The technical landscape flashed bullish signals as GBP/USD moved decisively above key resistance levels, attracting momentum traders.
– **Shift in Rate Expectations**: Markets have begun to price in a possible pause – and eventual reversal – of US rate hikes, narrowing yield differentials that had previously propelled the dollar higher.
– **Sterling as a Risk Proxy**: Improved global risk appetite, reflected in equity gains and tighter credit spreads, has provided an additional boost to currencies tied to global growth, including GBP.
—
### Technical Analysis: GBP/USD Points to 1.36
A thorough examination of GBP/USD’s technical charts reveals that the pair has room to extend its rally, provided it can maintain the momentum and withstand potential profit-taking on the way up.
#### Chart Structure and Key Levels
– **Support**: Immediate support appears at 1.3500, with a firmer floor near 1.3440, aligning with the 50-day moving average and former breakout zone.
– **Resistance**: The next major resistance is at 1.3600, a psychologically important round number and previous swing high. A sustained break here could pave the way toward 1.3680 and even 1.3770, where sellers may re-emerge.
– **Momentum Indicators**: Daily RSI and MACD both suggest ongoing bullish momentum, but caution is warranted as these readings approach overbought territory.
– **Bullish Pattern**: Price action has formed a bullish engulfing pattern on the daily chart, while the 21-day EMA has crossed above the 50-day EMA for the first time since early June, confirming the underlying positive tone.
#### Key Technical Takeaways
– A push and close above 1.3600 increases the likelihood of a move toward 1.3680 and 1.3700.
– Failure to hold above 1.3500 would negate the bullish outlook and risk a retest of the 1.3440/20 region.
– Trailing stops should be protected as upside targets are approached, given the risk of sharp pullbacks if sentiment abruptly shifts.
—
### Macro Backdrop: Economic Data and Central Bank Outlooks
The upcoming trading sessions are set to deliver a series of influential US economic reports that could shape interest rate
Read more on GBP/USD trading.