FX.co ★ Fex | GBP/USD

GBP/USD Forecast: Cable Preserves Bullish Structure Near 1.3459 Amid Monetary Policy Divergence The forecast maintains a constructively bullish trajectory as Cable consolidates around the 1.3459 benchmark on the 4-hour (H4) timeframe, supported by steady monetary policy dynamics and favorable yield differentials. The Bank of England recently elected to hold its Bank Rate firm at 3.75%, with hawkish voting dissenters underscoring persistent concerns regarding core services inflation and domestic wage growth. This firm central bank stance reinforces Sterling’s yield advantage over European peers and provides a strong structural floor against the US Dollar. Meanwhile, market participants are evaluating Federal Reserve policy expectations alongside incoming US macroeconomic releases. High-impact economic catalysts—most notably the upcoming US Non-Farm Payrolls (NFP) report, average hourly earnings, and ISM Services PMI data—are set to dictate immediate Greenback momentum. Furthermore, a recent cooling in international crude oil prices has eased headline inflationary pressures and import costs for energy-dependent economies, bolstering broader risk appetite across global financial markets. Against this macroeconomic backdrop, overall market sentiment surrounding Cable remains cautiously optimistic, as buyers look to capitalize on policy rate differentials while watching for data-driven volatility triggers.

The 20-period Bollinger Bands display steady bandwidth expansion, with spot price holding in the upper band envelope above the middle simple moving average pivot at 1.3365. Moving average alignment reinforces this bullish bias, as the short-term 20 EMA continues to trade comfortably above the 50 EMA and the long-term 200 EMA baseline. A decisive H4 candle close above local resistance at 1.3485 would confirm a bullish breakout, opening technical pathways toward the 1.3520 and 1.3560 expansion targets. Conversely, if intraday selling pressure pushes the price below the 1.3410 dynamic support, the pair could experience a temporary consolidation pull-back toward lower structural baselines. As long as price action trades above established support and resistance pivots, the broader momentum continues to favor upside continuation. Key Levels & Takeaways: Key Support Levels S1: 1.3410 (50-period EMA & Horizontal Pivot Zone) S2: 1.3365 (20-period SMA / Middle Bollinger Band Baseline) S3: 1.3300 (200-period EMA & Structural Support Floor) Key Resistance Levels R1: 1.3485 (Upper Bollinger Band & Local Swing High) R2: 1.3520 (Intermediate Technical Resistance Barrier) R3: 1.3560 (Major Psychological Resistance Target) Trend Direction: Bullish (Medium-Term / H4) Indicator Summary: Alligator Indicator: Active bullish expansion posture (Lips > Teeth > Jaws) Bollinger Bands: Moderate expansion, with price action holding within the upper band envelope above 1.3365 Moving Averages: Fully aligned bullish stack configuration (20 EMA > 50 EMA > 200 EMA)