The GBPUSD reached a new high of 1.35558, the highest since 18 August, surpassing Friday’s high of 1.35541. Buyers tested the waters above a resistance point, but momentum has since cooled, causing the pair to retreat.<\/p>\n
Currently, the price finds support at the 61.8% retracement from the 11 September high, at 1.35397. This level is critical for traders; remaining above suggests a bullish bias, while a drop below could indicate a failed breakout.<\/p>\n
In the broader view, the struggle to maintain gains after surpassing Friday\u2019s high points to a balancing act between buyers and sellers. If support at 1.35397 holds, a push higher is possible, with targets between 1.3576 and 1.35918. <\/p>\n
However, falling below this support with momentum could shift the market downside. Key moving averages, including the 100-hour, 100-day, and 200-hour moving averages, lie between 1.3446 and 1.34735 and would become potential targets if the price continues to decline.<\/p>\n
The pound has pushed to a new multi-week high against the dollar at 1.35558, but we see it is struggling to maintain altitude. This hesitation comes right after last Friday’s rally, which was fueled by a weaker-than-expected US jobs report. The key level to watch now is 1.35397; holding above it keeps the immediate bullish outlook alive.<\/p>\n
Given this setup, traders who believe the pound has more room to run could consider buying call options with a strike price above 1.3576. This view is supported by recent data showing UK inflation for August 2025 remained stubbornly high at 3.1%, putting pressure on the Bank of England to maintain its hawkish stance. This contrasts with the US, where cooling wage growth is giving the Federal Reserve reason to pause.<\/p>\n
If the price breaks below 1.35397, however, it signals that the breakout has failed and confidence is waning. In this scenario, buying put options or establishing bear put spreads would be a logical response to target the support zone around 1.3473. We saw a similar sharp rejection in the spring of 2024 when rate expectations diverged, leading to a rapid 300-pip drop over two weeks.<\/p>\n
The indecisive price action suggests a “tug-of-war” is happening, which could increase short-term volatility. For those uncertain about direction but expecting a significant move, a long straddle or strangle strategy could be appropriate. This allows a trader to profit whether the pound breaks decisively higher or reverses sharply lower in the coming weeks.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBPUSD hits new high, tests resistance, retreats; key support at 1.35397 may determine next price direction.<\/p>\n","protected":false},"author":62,"featured_media":17034,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-30382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=30382"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17034"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=30382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=30382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=30382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}