**GBP/USD Forex Signal: 25 November 2025**
*Original article credit: Adam Lemon, DailyForex*
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**Overview**
The GBP/USD currency pair continues to command trader attention as it moves through highly significant levels, with both short-term and long-term fundamentals and technicals shaping its current trajectory. For those trading the pair, understanding market sentiment, macroeconomic context, and technical chart formations is critical to being able to anticipate the next move. This analysis will break down the latest developments impacting GBP/USD, provide key technical levels, and outline potential trading strategies for the current session.
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**Recent Market Drivers**
The British pound has found itself under persistent pressure against the US dollar, reflecting the broader trend of US dollar strength seen in recent months. As traders weigh the outcomes of central bank policy meetings and macroeconomic data, market sentiment towards risk assets and global growth prospects has also played a part in determining pound-dollar direction.
– **Bank of England Rate Outlook:** The Bank of England (BoE) continues to maintain a cautious approach regarding its monetary policy. Recent data releases point to ongoing concerns about inflationary pressures, but with UK growth prospects facing headwinds, the possibility of rate hikes remains finely balanced.
– **Federal Reserve Stance:** The US Federal Reserve, on the other hand, has struck a more hawkish tone in recent statements, and markets are pricing in a higher for longer policy rate. This broad dollar strength narrative exerts downward pressure on cable.
– **Macro Data Releases:** Recent UK GDP and employment numbers have fallen short of expectations, adding to concerns about the UK’s ability to outpace its peers. In contrast, the US has shown resilience in consumer spending and labor market strength.
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**Current Sentiment**
The consensus among analysts points to heightened volatility for the pair in the immediate future. In particular, the market is scrutinizing every data release, and intra-day swings may present both risk and opportunity for active traders.
– Risk appetite in global markets has been fragile, leading to flows into perceived safe havens such as the US dollar.
– The pound’s performance appears tied not just to domestic news but also to broader market risk sentiment.
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**Technical Analysis**
Understanding price action in GBP/USD is crucial to deciphering its next move. Let’s look at some of the most important technical signals visible on the daily and intraday charts.
**Daily Chart Context**
– **Recent Trend:** The pair has been in a pronounced downtrend, making a series of lower highs and lower lows over the last several weeks.
– **Support Levels:** Immediate support is located around the 1.2350 area, which has been tested multiple times in recent sessions. A breach could pave the way to the next significant support at 1.2285.
– **Resistance Levels:** To the upside, 1.2490 stands as the nearest resistance, with a further obstacle at the psychological 1.2600 handle, where sellers have re-entered the market previously.
**Intraday Chart Observations**
– **Moving Averages:** The 50 and 200-period moving averages are both above the current price, confirming the bearish trend.
– **Momentum Oscillators:** The Relative Strength Index (RSI) is approaching oversold territory on the hourly charts, but not yet in extreme levels that typically precede a short-term reversal.
– **Chart Patterns:** There is minor consolidation visible, suggesting traders are pausing to digest recent moves before making directional bets.
**Key Technical Levels to Watch**
– **Immediate Support:** 1.2350
– **Next Major Support:** 1.2285
– **Immediate Resistance:** 1.2490
– **Major Resistance Above:** 1.2600
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**Trading Strategies for GBP/USD**
Given the interplay between technical levels and market fundamentals, traders should be alert to the potential for sharp moves. Here are some strategic considerations and possible trade setups:
**1. Short Side Bias**
– With
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