GBP/USD outlook: Bulls accelerate for the second straight day and approach strong barriers

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable continues to trend higher and nears key near-term barriers at 1.3588 (July 24 high) and 1.3618 (daily Ichimoku cloud top).

Weaker dollar on fresh signals of Fed rate cuts (the first cut to be expected in September) and latest data from UK labor sector, which do not urge BoE for immediate rate cuts, provided good support for sterling in last two sessions.

Break above psychological 1.3500 barrier (reinforced by 55DMA) and 1.3541 (Fibo 61.8% of 1.3788/1.3141) generated fresh bullish signal (to be confirmed on close above the latter).

Technical picture turned bullish on daily chart (north-heading 14-d momentum broke into positive territory / MA’s in full bullish setup, with formation of 10/100 DMA bull-cross) and support the action.

Bulls approach significant resistances (1.3588/1.3618) where increased headwinds cannot be ruled out, as Stochastic is strongly overbought.

Limited dips (ideally to be contained by 1.3500 zone ( to mark a healthy correction before bulls regain traction for final push through 1.3588/1.3618 triggers.

Firm break here to unmask key target at 1.3788 (2025 high, the highest since Oct 2021).

Res: 1.3588; 1.3618; 1.3635; 1.3700.
Sup: 1.3541; 1.3500; 1.3464; 1.3419.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.3646
2. R2 1.3585
3. R1 1.3543
PP 1.3482
1. S1 1.3439
2. S2 1.3378
3. S3 1.3336

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.

USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Week ahead: Fed minutes in the spotlight amid bond market rout

The first full week of October and the final quarter of the year get underway with little fanfare in terms of the economic agenda. But far from being short on excitement, the coming week will test market nerves, as government bond yields continue to soar on growing worries that the energy crisis will only get worse, fuelling inflation.

CFTC Report: Speculators turn more defensive as Oil exposure falls

The week in one sentence: During the week leading up to September 29, long positions in crude oil were significantly reduced, while short positions in the Canadian Dollar went up. In addition, the positioning of the Australian Dollar and the Japanese Yen declined, while Coffee buying stood out against a more general background of defensiveness.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.