GBP/USD analysis: scope to extend its recovery to 1.3200

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3150

NIESR GDP estimate next relevant release.
Brexit jitters ignored for the day, but to weigh on Pound anyway.

The Pound was among the best performers against the greenback this Monday, with the GBP/USD pair trimming its Friday losses and back to the 1.3150 by the end of the day. The pair also recovered half of the post-BOE decline when it neared the critical 1.3000 threshold. There were no macroeconomic releases in the UK, but political headlines hit the wires. UK PM May spoke before an official business lobby group but beyond her pledged to get the "best deal possible" when it comes to trade in the post-Brexit era, urging British businesses to be realistic about how long it will take to reach that deal, there were no new details. This Tuesday, the Pound could be affected by the NIESR GDP estimate for the three months to October, previously at 0.4%. Short term, the 4 hours chart suggests that the pair can extend its current recovery, although the longer-term perspective is bearish for Pound. Technical indicators in the mentioned time frame entered positive territory maintaining their strong upward slopes, while the price surpassed its 20 SMA that anyway maintains a bearish slope. The 50% retracement of the latest daily decline stands at 1.3165, being then the immediate resistance, ahead of the 1.3200 figure, where the pair has the 200 EMA and the 61.8% retracement of the same side.

Support levels: 1.3125 1.3085 1.3040

Resistance levels: 1.3165 1.3200 1.32545

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.

Gold remains on the back foot below $3,900

Gold now alternates gains with losses below the $3,900 mark per troy ounce on Friday. The precious metal struggles to regain traction amid the firmer US Dollar, mixed US Treasury yields and expectations of further tightening by the Fed at its December meeting.

Bitcoin just posted five straight losing weeks, and the storm may not be over yet

Bitcoin is struggling to find support, slipping below $70,000 as multiple headwinds threaten to push the Crypto King lower. The much-anticipated “Uptober” rally failed to materialize, with persistent selling pressure and widespread liquidations instead reinforcing the “Rektober” narrative.

Week ahead – Fed Minutes, inflation data and Nvidia earnings to guide investors

Fed minutes may add to hawkish tone as bets of 50-bps hike grow. Nvidia to report earnings as bar to impress high after spy scandal. Trade and geopolitics to be focal point of Trump-Xi summit.

Gold hit its lowest level of 2026 near $3,850

Gold (XAU/USD) attempts to stabilize around $3,890 on Friday after falling to $3,852 on Thursday, its lowest level since October 2025. The precious metal has lost more than 4% this week, as investors increasingly anticipate further monetary tightening from the Federal Reserve (Fed). The latest decline reflects a sharp change in market expectations.