**GBP/USD Resumes the Rise: In-Depth Technical Analysis (July 24, 2025)**
*Original Author: Economies.com Analysts*
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The GBP/USD currency pair, commonly referred to as the “Cable”, is showing renewed bullish momentum as of July 24, 2025. The market has responded to recent economic data, technical signals, and broader market sentiment, resulting in an upward trajectory for the British Pound against the US Dollar. In this comprehensive analysis, we will explore the driving forces behind the latest movements, crucial technical levels, and what traders should anticipate in the near term.
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**Fundamental Drivers Supporting GBP/USD’s Rise**
The GBP/USD’s current uptrend is underpinned by several fundamental factors. Understanding these drivers is crucial for traders and investors looking to position themselves effectively in the market.
**Key Fundamental Catalysts Include:**
– **Robust UK Economic Data:**
Recent releases indicate that the UK economy is experiencing a stronger-than-anticipated recovery. Key indicators such as GDP growth, employment figures, and retail sales have posted positive surprises, giving the Pound a boost.
– **Dovish Fed vs. Hawkish BoE:**
While the US Federal Reserve has taken a cautious approach, signaling a delay in further rate hikes and even discussing possible cuts, the Bank of England remains more hawkish. The BoE’s hints at persisting inflationary pressures and the willingness to keep interest rates elevated or potentially raise them further have made the Pound more attractive relative to the Dollar.
– **Reduced Brexit-Related Market Anxiety:**
Several lingering issues post-Brexit, especially around trade and regulatory alignment, have been addressed with new agreements between the UK and EU. This has contributed to improved investor sentiment around UK assets.
– **Easing US Inflation:**
Recent US inflation data has signaled a decelerating trend, aligning with the Fed’s dovish stance. This development has dampened demand for the US Dollar as a safe-haven asset and placed downward pressure on the greenback.
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**Technical Analysis: GBP/USD’s Ascending Channel**
From a technical standpoint, GBP/USD has resumed its upward movement, trading within a defined ascending channel. This channel is characterized by a series of higher highs and higher lows, indicating bullish control in the prevailing trend.
**Visualizing the Trend:**
– **Price Action:**
The pair is trading above key moving averages, notably the 50-day and 100-day Simple Moving Averages (SMAs), reinforcing the bullish sentiment.
– **Support and Resistance Levels:**
– **Immediate Support:** Located near 1.2970, aligning with the lower boundary of the current ascending channel.
– **Resistance Zone:** Next significant resistance seen at 1.3160, which if breached, could accelerate bullish momentum and pave the way toward the 1.3300 psychological level.
– **Oscillator and Momentum Readings:**
The Relative Strength Index (RSI) is currently positioned just below the 70 mark, indicating a strong trend but coming close to overbought territory. The Moving Average Convergence Divergence (MACD) remains positive, providing confirmation of upward momentum.
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**Intraday and Short-Term Trading Signals**
Traders following GBP/USD should remain attentive to several signals that may dictate short-term price movements. The current technical picture suggests a higher probability for continued gains, but some caution is warranted as the pair approaches key resistance levels.
**Short-Term Trading Observations:**
– **Bullish Breakout Confirmation:**
Sustained price action above the 1.3160 level on strong volume may confirm a bullish breakout, inviting additional buying interest.
– **Watch for Pullbacks:**
Minor corrections toward the support area around 1.2970 present potential buying opportunities, so long as the channel structure remains intact.
– **Volume Patterns:**
Increasing trading volumes on bullish sessions support the credibility of the rally
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