GBP/USD Bulls Defend Key 10-DMA Support; Eyes Remain on April Highs
Technical Analysis:
GBP/USD softened into the North American close on Wednesday, declining 0.44% to end the session near 1.3345 after oscillating within a range of 1.3310–1.3414. Despite the retreat, the pair successfully defended crucial technical support at the rising 10-day moving average (DMA), currently positioned at 1.3337. This moving average has repeatedly acted as reliable support since April 23, demonstrating resilient underlying bullish sentiment, suggesting that buyers continue to regard short-term dips as attractive entry points.
Technically, the immediate upside resistance for GBP/USD is defined by the rising 100-hour moving average at 1.3355, followed by Wednesday’s intraday high at 1.3414. Beyond this near-term resistance, bullish traders remain focused on the 2025 high established at 1.3445 (April 28). A decisive breakout above this major resistance would solidify the pair’s upward momentum, potentially opening the door to further advances towards psychologically significant resistance near the 1.3500 handle.
On the downside, the pair’s immediate support is anchored by the closely-watched 10-DMA at 1.3337. A sustained break and daily close below this critical support would increase short-term bearish pressure, initially targeting Wednesday’s session low at 1.3310, followed by more robust support at the April 23 low of 1.3234. However, as long as GBP/USD remains above the pivotal 50% Fibonacci retracement of the recent rally from 1.2712 to 1.3445, located at 1.3079, the overall bullish bias will remain intact. Traders should thus remain attentive to tariff-related news, which continues to overshadow rate differentials, potentially fueling renewed sterling strength in upcoming sessions.