GBP/USD Outlook

GBP/USD has retraced from July Highs towards 1.33750 price zone.

GBP/USD Daily chart analysis

Looking at the daily chart, GBP/USD is trying to find its footing after stuck in a broad range between support around 1.3180–1.3200 and key peak resistance near 1.3550. The pair recently caught a bid off its swing lows near 1.3280 and pushed back above the 60-day SMA (1.33625), with the current daily candle holding around 1.33776. This upward push shows buyers stepping in to defend the lower end of the range, preventing a deeper breakdown toward major multi-month support.

Overall, the daily bias stays cautiously neutral-to-bullish as long as price can hold above that 60 SMA. A clean daily close above 1.3380–1.3400 gives buyers room to target horizontal resistance at 1.3475, and potentially the 1.3550 highs above that. On the flip side, if price fails to stay above the 60 SMA, we could easily see a retest of 1.3280, where a break below opens the door toward 1.3180.

Daily Chart

Zooming into the 1-hour chart, price broke out above the descending trendline that had been holding it down since the 1.3550 high. The pair surged through that diagonal resistance to hit a high of 1.34024 before pulling back slightly to around 1.33761.

In the near term, we could see a retest of the broken trendline, which aligns with horizontal support around 1.3350–1.3370. If buyers hold that area on a dip, it sets up a solid retest structure for another push toward 1.3400 and 1.3450. However, a drop back under the trendline and below 1.3340 would invalidate the breakout and likely point to a deeper retracement..