FX.co ★ Sud | GBP/USD

The GBP/USD pair saw continued buying interest for the second consecutive day on Wednesday, nearing a one-week high of 1.3275 during the Asian trading session, as the dollar's corrective decline continued. The spot price edged up slightly by about 0.15% on the day, with the market heavily focused on the US Consumer Price Index (CPI) report due later in the day. In addition to today's headline CPI data, investors will also be watching the Producer Price Index (PPI) data due on Thursday and Federal Reserve Chair Kevin Warsh's speech at the International Monetary Fund and World Bank annual meetings in Bangkok on Friday, both of which are expected to provide further guidance on the paths of central banks' interest rates. This anticipated series of macroeconomic stimulus measures will determine the near-term dynamics of the dollar and provide directional momentum for the currency pair. Meanwhile, benchmark US Treasury yields have retreated from multi-year highs, pushing the dollar index (DXY) further away from its highest level since April 2025 and easing technical pressure on major rival currencies. However, market expectations of a potential interest rate hike by the Federal Reserve in December, coupled with ongoing geopolitical instability in the Middle East, continue to provide potential support for the US dollar, which could significantly limit the pound's gains. Technically, the four-hour chart shows the GBP/USD pair holding above the 100-period exponential moving average (EMA), reinforcing the short-term bullish bias. The Moving Average Convergence Divergence (MACD) indicator confirms this positive technical correction, having crossed the zero line and showing an expanding bullish line, suggesting buyers can maintain their lead as long as the price remains supported by the dynamic EMA zone. Other indicators, including the four-hour Relative Strength Index (RSI) hovering around 64.78, reflect strong buying momentum near overbought territory, suggesting that the initial upward move may encounter resistance from above. The recent rally faces immediate resistance at the 23.6% Fibonacci retracement level at 1.3298, with subsequent technical barriers at the 38.2% Fibonacci retracement level near 1.3371 and the 50.0% retracement level at 1.3429, forming a gradual supply consolidation. On the downside, key structural support lies near the Fibonacci level at 1.3181, where bears are expected to step in to protect the broader recovery structure. Conversely, a decisive close below this support level would invalidate the current bullish pattern, reignite bearish momentum, and pave the way for further declines towards the August volatility peak near 1.3675.