**GBP/USD Price Forecast: Cable Pauses at 1.3450**
*By TradingNews Analyst | Original article inspired by TradingNews.com*
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The British pound sterling has witnessed a phase of consolidation against the US dollar, with GBP/USD movements stalling around the 1.3450 mark in recent trading sessions. After a period marked by volatility and directional swings, the so-called “Cable” pair appears to be taking a breather, pausing before its next significant move. This article delves into recent price action, factors impacting the currency pair, technical indicator analysis, and potential scenarios for GBP/USD going forward.
## Recent GBP/USD Price Action
The GBP/USD currency pair has posted a measured rebound from recent lows, finding support near the 1.3400 area before stalling around the 1.3450 resistance level. Market sentiment had been weighed down by risk aversion, ongoing inflationary concerns, and diverging monetary policy stances between the Bank of England (BoE) and the Federal Reserve. Nevertheless, as the US dollar experienced periods of profit-taking and easing from recent highs, the pound managed to claw back some ground.
### Recent Highlights
– The pair bounced off the 1.3400 support, marking its lowest level in weeks.
– Immediate resistance emerged around 1.3450, which has now become a critical pivot zone.
– Trading volumes have thinned as short-term traders assess whether Cable can maintain upward momentum.
## Key Drivers Behind Recent Price Movements
The GBP/USD price action is a reflection of a complex interplay of domestic and global economic developments. Several key drivers are influencing undertones in the FX market, particularly for the pound against the strength of the greenback.
### 1. Divergence in Central Bank Policy
– **Federal Reserve Policy Update:** The US Federal Reserve’s commitment to a higher-for-longer interest rate regime has lent support to the US dollar in global currency markets, curbing meaningful rallies in GBP/USD.
– **Bank of England Positioning:** While the BoE had signaled further possible tightening to counter stubborn UK inflation, its tone recently turned more cautious amid softening growth prospects, hinting at a potential pause or end to its hiking cycle.
### 2. UK Macroeconomic Data
– **UK GDP Figures:** Mixed signals from the UK economy, with GDP growth modest but below market expectations, have led investors to temper enthusiasm for the pound.
– **Labor Market and Wages:** Steady wage increases and a tight labor market have fueled inflation risks, prompting close attention from FX traders regarding BoE decisions.
### 3. US Economic Performance
– **Resilient US Economy:** The robust performance of the US economy, especially strong employment numbers and consumer spending, has provided further lift to the USD.
– **Inflation Expectations:** Progress in US disinflation has bolstered hopes of steady rates, and any deviation could spark abrupt moves in GBP/USD.
### 4. Global Risk Sentiment
– **Geopolitics and Safe Haven Flows:** Escalating geopolitical risks, ranging from regional conflicts to trade disputes, have increased safe-haven flows into the dollar and limited upside in GBP/USD.
– **Stock Market Volatility:** Correlations with risk assets remain high, with pound rallies often coinciding with global risk-on sessions.
## Technical Analysis: GBP/USD at the 1.3450 Barrier
A detailed technical analysis reveals where the pair stands and what hurdles it must overcome for a sustained directional push. GBP/USD’s consolidation around 1.3450 underscores its status as a major pivot.
### Short-term Chart Observations
– **Support Levels:** The pair finds robust support near 1.3400 and further below at 1.3350, a level that has held on repeated tests over the past month.
– **Resistance Levels:** Immediate resistance is seen at 1.3450, with further hurdles at 1.3500 and
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