**GBP/USD Forecast: Key Levels and Analysis for July 29, 2025**
*Based on the insights of Ibeth Rivero (original article at DailyForex.com)*
The GBP/USD pairing, commonly referred to as “cable,” remains one of the most actively traded currency pairs in the global forex markets. As we approach the end of July 2025, traders are closely monitoring macroeconomic developments and technical signals, seeking clarity on the British Pound’s prospects against the US Dollar. This comprehensive analysis delivers an in-depth forecast for GBP/USD, spotlighting critical price levels, technical patterns, and market sentiment driving the pair.
**Market Overview**
The GBP/USD has experienced heightened volatility throughout July. Key drivers have included:
– Diverging monetary policy expectations between the Bank of England (BoE) and the Federal Reserve (Fed)
– Mixed UK economic data releases, particularly regarding inflation and GDP growth
– Shifting risk sentiment amid ongoing global macro concerns, such as trade relations and geopolitical developments
Traders have responded to these competing influences by repeatedly testing significant technical levels, creating a complex and dynamic trading environment.
**Technical Analysis**
Analysts rely on a blend of chart patterns, indicators, and price action to gauge GBP/USD movements. The current technical landscape as of July 29, 2025, features several noteworthy dynamics.
**Support and Resistance Levels**
The following key price levels dominate the GBP/USD trading range:
– **Immediate resistance**: 1.3200
– **Secondary resistance**: 1.3250
– **Major resistance**: 1.3300
– **Immediate support**: 1.3125
– **Secondary support**: 1.3100
– **Key psychological support**: 1.3000
These levels are reinforced by recent highs and lows, as well as prominent Fibonacci retracement zones.
**Price Action and Chart Patterns**
– In the run-up to July 29th, GBP/USD has formed several doji candlesticks on the daily chart, signaling indecision and potential reversals.
– The pair is trading in a tight consolidation channel, reflecting a tug-of-war between bullish and bearish forces.
– Several recent attempts to break above 1.3200 have failed, highlighting a robust resistance barrier.
– Downward momentum appears limited, with buyers stepping in near the 1.3125 and 1.3100 support zones.
**Moving Averages & Oscillators**
– The 50-day simple moving average (SMA) is currently situated near 1.3180, acting as a dynamic resistance level.
– The 200-day SMA, a broader trend indicator, remains below current prices, buttressing the underlying bullish tone.
– Relative Strength Index (RSI) readings hover near 50, indicating market neutrality and the potential for volatility spikes in either direction.
– MACD (Moving Average Convergence Divergence) has flattened, mirroring the recent sideways price action and the lack of a clear trend.
**Fundamental Factors Influencing GBP/USD**
While technical analysis provides a valuable tactical lens, current GBP/USD movements are deeply intertwined with fundamental narratives. Several key themes are shaping market expectations:
**Monetary Policy Divergence**
The BoE and the Fed have approached monetary policy with differing priorities in 2025:
– The BoE has signaled a cautious approach, balancing inflation risks with efforts to support economic growth. Recent rhetoric has pushed back against aggressive rate hikes, tempering pound strength.
– The Fed, by contrast, remains committed to its tightening cycle. Persistently strong US economic data and sticky inflation have kept the US dollar relatively well-supported.
**UK Macroeconomic Data**
GBP traders have closely scrutinized the following domestic developments:
– **Inflation:** Recent CPI releases came in slightly above BoE forecasts, complicating the central bank’s outlook and supporting the case for eventual tightening.
– **Labor Market:** Employment numbers have remained resilient,
Read more on GBP/USD trading.