**GBP/USD Shows More Positive Signals – Analysis (02-10-2025)**
_Article inspired by the original analysis published on Economies.com_
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In the global currency markets, the GBP/USD pair stands as one of the most heavily traded major pairs, reflecting the continuous economic interplay between the United Kingdom and the United States. As of early October 2025, the pair has demonstrated increased bullish momentum, catching the attention of traders, investors, and analysts keenly interested in the medium to long-term dynamics of this cross. This article, inspired by the analysis published on Economies.com, delves deeply into the technical and fundamental factors influencing GBP/USD, offering readers a comprehensive overview of its current performance as well as outlook for the remainder of the month.
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### Current Performance: GBP/USD at a Glance
The GBP/USD pair has witnessed notable volatility in recent weeks, catalyzed by a mixture of macroeconomic data releases, shifting risk sentiment, and evolving expectations regarding monetary policy on both sides of the Atlantic. Since the start of Q4 2025, the pair has oscillated within a tightly defined range, with underlying positive signals indicating the increasing possibility of an upside breakout.
#### Key Observations
– GBP/USD has managed to sustain upward momentum despite sporadic pullbacks.
– Buyers have restored control, especially during the Asian and London sessions, pushing the pair above key technical resistance levels.
– The broad Dollar Index (DXY) has retraced from its recent peaks, providing additional lift to cable.
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### Technical Analysis: Positive Signals Emerge
A close inspection of the GBP/USD chart reveals that the pair is at a pivotal juncture. Technical indicators and price action patterns suggest mounting bullish pressure, although traders remain conscious of lingering resistance zones. Here are the primary technical insights as of October 2, 2025:
#### Trend Structure
– Short-term moving averages (such as the 20- and 50-period SMAs) have begun to slope upwards, signaling renewed buying activity.
– The pair has printed a series of higher lows and higher highs, confirming the maturation of a new bullish trend phase.
#### Resistance and Support Levels
– **Immediate Resistance:** The 1.2680 area represents a critical resistance threshold. A sustained close above this level could pave the path toward further gains in the short term.
– **Minor Support:** The 1.2580-1.2600 zone remains pivotal, providing a solid floor against any renewed selling pressure.
– **Major Support:** Structural support is established at the 1.2500 handle, reinforced by prior price reactions and volume accumulation.
#### Oscillator Readings
– The Relative Strength Index (RSI) on the 4-hour and daily charts is hovering around the 60-65 region, suggesting that bullish momentum is present but not yet overextended.
– MACD (Moving Average Convergence Divergence) has moved above its signal line, signaling a positive bias.
#### Chart Patterns
– Recent price action hints at the formation of an ascending triangle, typically a bullish continuation pattern.
– Breakout confirmation would require a clear push and close above the 1.2680 ceiling, ideally accompanied by a surge in trading volume.
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### Fundamental Factors Supporting the Pound
The technical landscape is underpinned by a supportive macroeconomic backdrop for Sterling. Several positive signals on the fundamental front have contributed to the pair’s resilience and have the potential to fuel further advances in the coming days.
#### UK Economic Data
– **GDP Growth:** Latest quarterly figures from the UK Office for National Statistics revealed a modest but better-than-expected expansion in real GDP, indicating ongoing economic resilience.
– **Labor Market:** Employment growth remains steady, with wage pressures starting to ease. This dynamic has provided the Bank of England (BoE) with additional flexibility regarding policy calibration.
– **Inflation:** Headline CPI figures have softened slightly but remain above the BoE’s target, keeping the central bank in a
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