The GBP/USD currency pair has recently dipped after hitting a significant point of interest. So, does this shift signal a potential longer-term downturn for the pair?
Let’s dig a bit deeper by examining the daily chart:
The U.K. recently released a Consumer Price Index (CPI) report that was cooler than expected this February. Additionally, the Office for Budget Responsibility (OBR) in the U.K. has revised its 2025 growth forecasts down from 2.0% to 1.0%, though they did increase their estimates for 2026 and 2027. On the flip side, the U.S. dollar is gaining traction as a safe haven due to uncertainties surrounding U.S. tariffs and a strong U.S. durable goods report.
Remember, fundamental factors typically drive market directions and volatility levels. If you haven’t already, it’s a good time to dive into the recent economic updates affecting the U.S. dollar and the British pound by checking the economic calendar regularly for daily news highlights.
Throughout much of 2025, GBP/USD has been on an upward trajectory. However, the latest downward movement below the significant psychological level of 1.3000 is making traders question whether the bullish momentum is starting to wane.
At the moment, the pair is struggling to break past the 1.3000 to 1.3100 range. This zone aligns with the R2 Pivot Point at 1.2980 and forms the peak of a range visible on the daily chart. Could this potentially mark the onset of a deeper, longer-term decline?
For those considering a bearish perspective, watch closely for more red candlesticks and consistent trading below the 1.2900 psychological level. If the bearish pressure gains enough momentum below this consolidation zone, it might lead to further selling. This could pull GBP/USD toward the 1.2800 mark, close to the R1 Pivot Point at 1.2778, and the 200 SMA. In a more extreme scenario, the currency pair might even slide toward support around the 1.2600 level.
Of course, there’s also the chance that the recent dip is merely a pause before a potential continued bullish trend. Should GBP/USD start showing bullish candlesticks again, it might regain traction back up to the resistance area near 1.3000. A robust move above the 1.3100 level could potentially open the door for a rally aiming for the 1.3400 resistance zone.
Regardless of which direction you lean towards in your trading, always apply solid risk management practices, and stay on top of key economic events that could sway the broader market atmosphere!
