FX.co ★ Tote | GBP/USD

GBPUSD Market Analysis: In the Asian session, the GBP/USD pair is gaining momentum and pushing over the round-level resistance of 1.32710. The appeal of the US Dollar Index (DXY) is fading as there are rising expectations that the Federal Reserve would adopt a less hawkish monetary policy, leading to support for the Cable (Fed). The financial crisis in the United States has tempered Fed Chairman Jerome Powell's forceful advice from a few weeks ago, and the Dollar Index has gained just around 103.80. Inflation has subsided, and the demand supporting commercial banks prefers a lower interest rate hike, if only to keep pressure on persistent inflation. Bulls in the GBP/USD pair are taking a breather around a five-week high, with the pair recently dipping to 1.32524 after reversing from the main resistance line early Monday. Even after a three-day winning streak, the Cable pair remains modestly bid. Despite the extremely overbought RSI (14) and somewhat positive MACD signs, a downward-sloping resistance line from late January, which was around 1.32796 at the time of writing, seems to be a difficult nut to crack for GBP/USD investors. The 61.8% Fibonacci retracement level of the quote's slide from late January to early March, which is at 1.32710, also acts as an upward resistance. A violation of the mid-February top at 1.33486, which seems to be the last line of defense for the GBP/USD bears, might propel the Cable price to the January 2026 high of 1.35254. On the other hand, intraday sellers in the GBP/USD pair may be lured to the 50% Fibonacci retracement level of 1.31924, but the convergence of the 50-EMA and a one-week-old ascending support line at 1.31586 seems to make it tough for the bears to recover control.