GBP/USD Bulls Regain Confidence Amid Narrower U.S. Tariffs; Focus Shifts Toward 1.3015 Resistance
Technical Analysis:
GBP/USD demonstrated notable resilience Monday, rebounding from Asian session lows just below 1.2900, suggesting underlying bullish confidence remains intact. The pair reached an early North American session peak of 1.2968, though subsequently settled slightly lower around 1.2908 amid profit-taking and a modest recovery in U.S. yields. Technical price action indicates bulls remain cautiously optimistic, supported by improved market sentiment after reports that upcoming U.S. tariffs set for April 2 will be narrower and less damaging than previously anticipated.
Immediate technical support is clearly defined at the Asian low of 1.2883, with stronger support slightly below at 1.2862, the March 10 trend low. Additional downside protection is provided by the rising 21-day moving average at approximately 1.2847, reinforcing the bullish bias in the short term. Provided GBP/USD remains above this dynamic support level, the near-term bullish narrative remains largely intact. Traders will closely monitor Wednesday’s UK CPI data, as positive results could strengthen expectations for sustained Bank of England hawkishness, fueling renewed bullish momentum toward recent highs.
On the upside, GBP/USD faces initial resistance near the 10-day moving average at 1.2958, previously a supportive pivot. Beyond that, stronger resistance emerges at Monday’s intraday high at 1.2974, followed by the major psychological and technical barrier at the 2025 peak of 1.3015 (March 20 high). A convincing daily close above 1.3015 would confirm bullish continuation, likely opening the path toward October highs around 1.3130, particularly if U.S. rate-cut expectations remain entrenched.