Pound Sterling Price News and Forecast: GBP/USD bulls continue to ignore overbought conditions [Video]

FXStreet Team FXStreet

GBP/USD Forecast: Bulls continue to ignore overbought conditions

Following Monday's short-lasting downward correction, GBP/USD regained its traction early Tuesday and was last seen trading at its highest level since March 2022 near 1.3230.

The positive shift seen in risk sentiment on easing fears over a deepening conflict in the Middle East doesn't allow the US Dollar (USD) to build on Monday's rebound and allows GBP/USD to stretch higher in the European morning. At the time of press, the UK's FTSE 100 Index was up 0.6% on the day and US stock index futures were rising between 0.1% and 0.25%, reflecting the improving market mood. Read more...

GBP/USD: Is the next downturn approaching?

GBP/USD opened the week with marginal losses after its almost uninterrupted two-week rally was rejected near the key resistance trendline at 1.3229 for the third time. While the bulls are trying to make a comeback today, the RSI and Stochastic oscillator are both flatlining in the overbought zone, indicating a high risk of a downside correction.

Perhaps, a step below the 1.3180 area, which has been acting as support for the second consecutive day, could confirm additional losses towards the 1.3025-1.3085 zone. If the steep ascending trendline from August’s lows is broken along with the 1.3000 psychological mark too, it could lead to a rapid decline towards the 20- and 50-day simple moving averages (SMA) found between 1.2890-1.2900. Read more...

Elliott Wave intraday shows bullish sequence in GBP/USD [Video]

GBP/USD recently broke above previous peak on 7.14.2023 high at 1.3143 and shows a higher high bullish sequence from 9.26.2022 low. This leaves no doubt about the right side and direction of the pair which is higher. Near term, rally from 4.22.2024 low is ongoing as a 5 waves impulse Elliott Wave structure. Up from 4.22.2024 low, wave 1 ended at 1.3045 and pullback in wave 2 ended at 1.266. Pair has turned higher and broken above wave 1 suggesting wave 3 is in progress.

Up from wave 2, wave (i) ended at 1.277 and dips in wave (ii) ended at 1.272. Pair extended higher again from there. Up from wave (ii), wave i ended at 1.287 and pullback in wave ii ended at 1.2798. Pair extended higher in wave iii towards 1.313 and wave iv pullback ended at 1.307. Final leg wave v ended at 1.323 which completed wave (iii). Expect pair to end wave (iv) and rally 1 more leg to end wave (v) which should complete wave ((i)). Then it should pullback in wave ((ii)) to correct cycle from 8.8.2024 low in 3, 7, 11 swing before the rally resumes. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD retreats toward 1.1700 on modest USD recovery

EUR/USD stays under mild bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes near 1.3450

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades marginally lower on the day at around 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold advances toward $4,400 and gains more than 1.5% on the day after suffering heavy losses amid profit-taking heading into the end of the year. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).