GBP\/USD recovered from earlier losses and traded near 1.3450 in Asian hours on Monday. The daily chart still points to a bearish tilt, with price moving inside a descending channel.<\/p>\n
The 14-day Relative Strength Index is at 40, showing ongoing bearish pressure without reaching oversold levels. This suggests sellers are in control, but without extreme selling.<\/p>\n
The near-term tone remains mildly bearish as the pair holds below the nine-day Exponential Moving Average. Price is also drifting towards the flatter 50-day average, which points to weakening upside momentum.<\/p>\n
Support is first seen near 1.3350. Further support levels include the descending channel area around 1.3140 and the 10-month low at 1.3010.<\/p>\n
Resistance is at the nine-day EMA at 1.3504, then the 50-day EMA at 1.3518. If price breaks above these, it could move towards the upper channel boundary near 1.3630, and then 1.3869, the highest since September 2021, set on 27 January.<\/p>\n
We remember that around this time in 2025, the technical picture for GBP\/USD was distinctly bearish as the pair traded within a descending channel. That analysis held, as sluggish UK economic growth figures throughout mid-2025 pushed the currency pair down toward the 1.3140 support zone. This historical price action provides a critical map for the levels we are watching today.<\/p>\n
The environment now appears to be shifting, creating opportunities for a reversal from last year’s trend. The latest figures from the Office for National Statistics show UK inflation has cooled to a more manageable 2.5%, beating market expectations and giving the Bank of England more flexibility. This improved inflation outlook strengthens the fundamental case for the pound.<\/p>\n
On the other side of the pair, recent US economic data has been less impressive, with the last Non-Farm Payrolls report indicating a slowdown in job creation to 150,000, below the consensus forecast. This has tempered expectations for hawkish Federal Reserve policy, weakening the dollar’s momentum. This economic divergence between the UK and US is creating a new narrative for traders.<\/p>\n
Therefore, we should consider positioning for potential GBP\/USD strength in the coming weeks. Buying call options with strike prices just above the 1.3350 level, which acted as support last year, could capture a move higher. A successful break would put the old resistance level around 1.3500 back in focus as a primary target.<\/p>\n
To manage the risk of a false breakout, we can buy put options with a strike price near 1.3150. This level served as a significant floor during the 2025 downturn and would provide a hedge if the recent positive sentiment fades. This strategy allows us to participate in the upside while defining our risk if last year’s bearish pressure returns.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBP\/USD rebounds near 1.3450 but remains bearish below key EMAs; support 1.3350; resistance 1.3504\u20131.3518.<\/p>\n","protected":false},"author":103,"featured_media":17036,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-50485","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\/50485","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\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=50485"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/50485\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17036"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=50485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=50485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=50485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}