GBP/USD outlook: Fresh recovery acceleration opens way for retest of key barriers at 1.3443/44

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable jumped around a hundred pips on Monday morning, lifted by weaker dollar on surprise US credit rating downgrade and the latest EU/UK agreement on defense.

Fresh advance attempts to break above three-day congestion that would signal continuation of recovery from 1.3139 (correction low of May 12) which has already retraced 76.4% of 1.3444/1.3139 pullback.

Improving daily studies (MA’s returned to bullish setup / rising 14-d momentum is pressuring the centreline and on track to break into positive territory) while firmly bullish weekly studies add to the notion, particularly with bear-trap under Fibo support at 1.3163.

Close above 1.3400 zone (May 6 lower top / round-figure) is needed to validate fresh bullish signal and open way for retest of key barriers at 1.3443/44 (2024/2025 tops) where bulls are likely to face increased headwinds.

Res: 1.3402; 1.3444; 1.3500; 1.3557.
Sup: 1.3360; 1.3307; 1.3250; 1.3200.

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

1. R3 1.3412
2. R2 1.3372
3. R1 1.333
PP 1.329
1. S1 1.3248
2. S2 1.3208
3. S3 1.3166

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.