GBP/USD bounces off short-term support line to justify bullish options market

GBP/USD extends recovery moves from two-week-old support line.
Options market turns most bullish in five weeks.
Normal RSI conditions favor buyers inside rising channel.

Anil Panchal FXStreet

GBP/USD picks up bids to 1.4152, up 0.03% intraday, ahead of Monday’s London open. In doing so, the cable pair takes clues from the upbeat risk reversals to portray recovery moves from a short-term support line.

One-month risk reversal (RR) of GBP/USD jumps to +0.150 for the week ending on May 21, 2021, per data from Reuters.

The positive figures suggest call options (bullish) are surpass the put options (bearish). Also, the RR jumped the most since mid-April, which in turn backs the GBP/USD buyers inside a six-week-old rising channel bullish chart pattern.

Given the quote’s latest rebound, backed by normal RSI conditions, 1.4200 could return to the charts. However, any further upside needs to conquer the stated channel’s upper line, around 1.4260, to keep the bulls happy.

Meanwhile, a downside break of the stated support line near 1.4140 could target the 1.4100 round-figure before directing GBP/USD sellers toward the 1.4000 psychological magnet.

Though, the pair’s downside past 1.4000 should rebound from the stated channel’s support line, around 1.3955, if not then the monthly low of 1.3801 will become the bears’ favorite.

GBP/USD four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price	1.4153
Today Daily Change	4 pips
Today Daily Change %	0.03%
Today daily open	1.4149

Trends
Daily SMA20	1.4016
Daily SMA50	1.39
Daily SMA100	1.3843
Daily SMA200	1.3502

Levels
Previous Daily High	1.4234
Previous Daily Low	1.4141
Previous Weekly High	1.4234
Previous Weekly Low	1.4077
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.4176
Daily Fibonacci 61.8%	1.4198
Daily Pivot Point S1	1.4115
Daily Pivot Point S2	1.4082
Daily Pivot Point S3	1.4022
Daily Pivot Point R1	1.4208
Daily Pivot Point R2	1.4268
Daily Pivot Point R3	1.4301

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.