GBP/USD Hits Fresh 2025 High; Bullish Momentum Targets 2022 Peaks
Technical Analysis:
GBP/USD marked a fresh 2025 high during weekend trade, consolidating gains near the 1.3580 region on moderate flow from FX Matching. The pair traded within a narrow yet constructive 1.3559–1.3587 range on Monday, demonstrating continued bullish resilience amid relatively thin economic data from the UK. Sterling sentiment was mildly bolstered by news that the Labour government plans to invest GBP 3 billion to enhance domestic workforce training and reduce reliance on foreign labor, aiming to strategically offset the political gains of Reform UK. This supportive domestic policy stance aligns well with the broader narrative underpinning recent GBP strength.
Technically, GBP/USD maintains a distinctly bullish configuration, with rising 5-, 10-, and 21-day moving averages clearly signaling positive momentum. The expanding 21-day Bollinger Bands further validate bullish sentiment, highlighting the strong upside potential at current trend highs. Momentum indicators, such as daily RSI and MACD, are also positively oriented, suggesting a continuation of buying pressure in the near term. Immediate technical resistance above Monday’s intraday high (1.3587) now lies near the major psychological level at 1.3600, beyond which bullish traders will target the 2022 peak at 1.3749, marking the next substantial technical hurdle.
On the downside, initial support comes in clearly defined at Monday’s intraday low of 1.3510. A move below this level could trigger modest short-term profit-taking, opening the door to deeper corrective potential toward Friday’s established support base at 1.3420. Nevertheless, with both technical and fundamental factors currently favoring the upside, substantial dips are likely to be viewed as buying opportunities by bullish market participants. Traders will closely monitor busy economic calendars from both the eurozone and U.S. this week, which may shape broader dollar sentiment and indirectly influence GBP/USD dynamics.