**The GBP/USD Shows More of the Positive Signs – Analysis**
*By Economies.com, Tuesday, September 10, 2025*
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## Overview
The GBP/USD currency pair has captured significant attention as recent trading sessions revealed intensified bullish activity. Amid shifting trends and changing sentiments, analysts continue to scrutinize the pound’s performance against the backdrop of evolving macroeconomic indicators and monetary policy stances. This deep-dive analysis, based on the article by Economies.com, details the current technical outlook, explores key catalysts influencing the pair, and examines potential scenarios moving forward.
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## Recent GBP/USD Performance
Over the past weeks, GBP/USD has consistently demonstrated signs of recovery. After facing notable downward pressures in previous months, key macroeconomic data releases and evolving policy signals provided the pound with fresh momentum.
– **Price Recap**: The pair rebounded from recent lows, solidifying a series of higher lows and higher highs.
– **Bullish Sentiment**: The renewed confidence in GBP/USD rests on an apparent change in investor appetite, technical confirmations, and supportive fundamentals.
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## Technical Analysis
Analyzing the current structure, GBP/USD has not only stabilized above crucial support levels but has also confirmed a bullish trajectory through technical indicators.
– **Support and Resistance Levels**:
– Key support remains established around the 1.2500 mark.
– Immediate resistance appears close to the 1.2700 level, with further barriers above around 1.2850.
– **Moving Averages**:
– The price holds above the 50-period moving average on the 4-hour chart, indicating short-term bullishness.
– The 200-period moving average also points upwards, reinforcing a longer-term bullish bias.
– **Momentum Indicators**:
– Relative Strength Index (RSI) readings stay above 50, indicating ongoing positive momentum but avoiding overbought territory.
– MACD histogram shows a series of expanding green bars, supporting the bullish outlook.
### Key Chart Patterns
– **Ascending Channel Formation**: GBP/USD is currently consolidating within an upward-sloping channel, indicating the market’s inclination for higher levels.
– **Breakout Signals**: A decisive break above the 1.2700 resistance could open the door to the next leg higher, with immediate upside targets near 1.2850 and, ultimately, 1.3000.
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## Fundamental Catalysts
Several fundamental factors underpin the recent strength in GBP/USD. Macro data, central bank decisions, and geopolitical influences are all at play.
### 1. Economic Indicators
– **UK GDP Figures**: Recent data prints point toward modest growth, surpassing some analyst expectations. Rising output and improving employment numbers buoy the GBP.
– **US Economic Releases**: Slightly softer US inflation data and moderating growth figures have taken some wind out of the dollar’s sails, favoring GBP/USD upside.
### 2. Monetary Policy Dynamics
– **Bank of England (BoE)**:
– Indications from BoE officials suggest a less hawkish, yet steady approach.
– While rate hikes remain unlikely, the bank has refrained from signaling imminent cuts, maintaining policy support for the pound.
– **Federal Reserve (Fed)**:
– Language from recent FOMC meetings has leaned dovish compared to earlier in the year. The prospect of further rate increases appears to be waning.
– Reduced rate differentials between the Fed and BoE support GBP/USD advances.
### 3. Inflation and Wage Growth
– **UK Inflation**: Although CPI readings remain above the Bank of England’s target, recent moderation has been seen, partially allaying fears of uncontrolled price surges while keeping real yields attractive.
– **US Wage Data**: Wage growth in the US hints at potential cooling, further easing dollar strength.
### 4. Geopolitical and Trade Developments
– **Post-Brexit Trade Talks**: The UK
Read more on GBP/USD trading.