Sterling Steadies Near 1.33 Amid Sliding U.S. Yields, Technical Barriers Persist
Technical Analysis:
GBP/USD consolidated gains into Thursday’s New York close, rising modestly by 0.26% to finish at 1.3293, as declines in U.S. Treasury yields weighed broadly on the dollar. The pair remained largely tethered to its flat 10-day moving average (DMA) around 1.3281, reflecting a persistent lack of clear directional momentum. Despite multiple attempts to sustain gains above the key psychological 1.33 handle, bullish momentum has repeatedly stalled, most recently at Thursday’s intraday high of 1.3319, underscoring robust selling pressure around this pivotal resistance zone.
On a technical basis, immediate resistance is defined clearly at Thursday’s high of 1.3319, with more substantial overhead supply situated at the May 14 peak of 1.3361. Beyond this, the upper 30-week Bollinger Band at 1.3426 acts as a formidable technical ceiling, marking the outer boundary of the pair’s recent multi-week trading range. Momentum indicators on daily charts remain neutral to slightly bullish; however, the lack of sustained breaks above recent highs signals caution for sterling bulls. Unless GBP/USD decisively closes above the critical 1.3361 resistance, upside remains limited, keeping the pair vulnerable to profit-taking and downside corrections.
Immediate support to the downside emerges at the May 15 daily low at 1.3254. Should bearish momentum build sufficiently to breach this level, the next significant support is the 30-day moving average at 1.3214. Below this moving average, further downside risk emerges, targeting the critical Fibonacci retracement level at 1.3079, representing the 50% retracement of the 1.2712–1.3445 rally. Given broadly aligned short-term rate expectations in both the U.S. and UK through the remainder of 2025, as indicated by LSEG’s IRPR, GBP/USD is likely to remain largely contained within a broad 1.32–1.3450 range, barring unexpected developments in inflation data or renewed geopolitical volatility.