**GBP/USD Price Prediction: Pound Eyes 1.36 After Bullish Rebound and Key U.S. Data Ahead**
*By Skerdian Meta, Chief Analyst & Editor at FX Leaders – Adapted for educational purposes*
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The GBP/USD currency pair has demonstrated significant resilience in recent trading sessions, rebounding from recent lows and holding strong against the US dollar. With the market turning its focus to upcoming high-impact U.S. economic data, all eyes are on whether the pound can sustain its bullish momentum and make a sustained move towards the psychologically significant 1.36 level.
This analysis takes a deep dive into the factors propelling the pair, key technical signals, and macroeconomic catalysts that could shape the next phase for GBP/USD, referencing insights from Skerdian Meta at FX Leaders.
## Recent Performance: Assessing Pound’s Bullish Turn
In the past few weeks, the British pound endured waves of volatility, largely reflecting broader uncertainty in both the UK and US economies. However, improved sentiment around the UK economic outlook and some softer US data releases have helped GBP/USD regain ground.
– **GBP/USD rebounded sharply from the 1.33 handle**, rallying nearly 250 pips as buyers returned to the market.
– The pair broke key resistance levels at 1.3450 and 1.3500, signaling renewed bullish interest.
– The latest up-move coincides with a pullback in the US dollar index from multi-month highs, helped by more cautious comments from Federal Reserve officials on the pace of future rate hikes.
## What’s Driving GBP/USD Higher?
Several intertwined macroeconomic and technical factors are encouraging the pound’s recent bullish behavior.
### 1. Easing US Inflation Pressures
– U.S. inflation data has shown signs of slowing, prompting speculation that the Federal Reserve may pause or slow upcoming rate hikes.
– Softer inflation typically weighs on the dollar as it signals lower yields, guiding capital away from USD.
– Recent PCE (Personal Consumption Expenditure) readings and CPI figures have come in below consensus forecasts, reinforcing this narrative.
### 2. Resilience in UK Data
– UK economic data continues to surprise on the upside, particularly in key metrics like GDP growth, employment, and purchasing managers’ surveys (PMIs).
– Wage growth in the UK remains robust, supporting consumer spending and underpinning expectations that the Bank of England may keep rates tighter for longer.
### 3. Market Sentiment and Risk Appetite
– A risk-on environment in global asset markets has reduced safe-haven demand for the dollar.
– Equity markets have staged recoveries off their lows, and investors are showing renewed appetite for higher-yielding currencies like GBP.
### 4. Technical Bounce and Short Covering
– The technical outlook for GBP/USD has encouraged a fresh wave of buying as major supports held and momentum indicators turned bullish.
– Traders who bet against the pound near recent lows were forced to cover their positions, fueling further gains.
## Key Technical Levels and Chart Analysis
A review of the GBP/USD daily chart highlights the importance of technical confluence zones and pivot points shaping the pair’s price action.
### Major Support Levels
– **1.3300:** This psychological level served as a floor for the recent downtrend, with multiple bounces noted here in prior sessions.
– **1.3400:** A formerly broken resistance, now acting as a near-term support as bulls defend gains.
### Critical Resistance Points
– **1.3550 to 1.3580:** A zone of horizontal resistance and previous swing highs, this area will be the next test for buyers.
– **1.3600:** The round number is particularly important, both as a psychological target and as the top of a broader resistance cluster dating back several months.
### Technical Indicators
– **Moving Averages:** The 50-day and 200-day simple moving averages are converging near 1.3450, highlighting a
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