GBP/USD bulls challenge the 1.3600 handle as US Dollar retreats from highs


  • All eyes on Bank of England’s Super Thursday.
  • The US dollar is on the back foot as the US withdrawal from the Iran nuclear deal weighs on the greenback.
  • The core US Producer Price Index (PPI) came in below expectations at 2.3% in April. 

The GBP/USD is trading at around 1.3593 up 0.34% on Wednesday as investors are slowly unwinding their short GBP/USD positions ahead of the Bank of England rate decision and quarterly Inflation Report on Thursday. 

Cable bulls gathered some momentum and managed to orchestrate a counter-trend move from the 1.3500 handle earlier in the European session to challenge the 1.3600 handle in the American session. 

The US dollar is trading lower on Wednesday below the 93.00 mark as investors are taking some profits off the table after US President Trump announced on Tuesday that he withdrew the US from the Iran nuclear deal. Adding pressure to the greenback is the worse-than-expected Producer Price Index (PPI) data. The PPI ex Food and Energy year-on-year to April came below expectations at 2.3% against 2.4% forecast by analysts. 

Technically, the GBP/USD is oversold and there is a combination of unwinding short positions and bottom pickers which is keeping the cable in the 1.3500-1.3600 range. The Bank of England’s Super Thursday will possibly give investors more details as to when the next rate hike will be coming next and give GBP some directionality.

GBP/USD 4-hour chart 

The GBP/USD medium-trend is bearish but it is resting at its 200-period simple moving average and is currently in a range between the 1.3500 and 1.3600 level. If bulls manage to reclaim the 1.3650 and 1.3700 resistance levels the trend can reverse to the upside. Supports are seen at the 1.3550 and 1.3500 psychological levels.  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.

GBP/USD News

EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 

EUR/USD News

XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures