GBP/USD Eyes Fresh 2025 Highs as Traders Await Key UK Inflation Data
Technical Analysis:
GBP/USD rebounded impressively into Tuesday’s North American close, rising by 0.13% to settle near 1.3380 after recovering from intraday lows around 1.3336. Despite encountering persistent offers near the 1.34 handle over the past two trading sessions, the pair continues to display resilience, as dips remain shallow amid lingering U.S. fiscal uncertainty related to budget, tax policy, and debt ceiling concerns. Technically, sterling’s ability to hold firmly above its rising 10-day moving average (1.3292) and the upward-sloping 30-DMA (1.3269) underscores bullish market sentiment ahead of pivotal UK inflation data on Wednesday.
Immediate resistance now stands prominently at Monday’s session high of 1.3404, closely followed by the critical 2025 peak at 1.3445, established on April 28. A decisive break above this pivotal technical ceiling would strongly reaffirm bullish momentum, potentially paving the way toward the upper 30-day Bollinger Band at 1.3511. Should UK inflation figures suggest manageable economic growth and inflationary conditions, GBP/USD could extend toward levels last traded in early 2022, with ultimate technical targets seen around 1.3600–1.3640 (February 2022 highs).
Conversely, short-term support remains well-defined at Tuesday’s intraday low of 1.3336, beneath which the pair would likely find more substantial buying interest at the 10-DMA near 1.3292. A deeper retracement toward the rising 30-day moving average at 1.3269 would represent an important test for the recent bullish structure; any move below this moving average could indicate a weakening of bullish conviction. However, with the U.S. dollar under persistent pressure from ongoing fiscal and tariff uncertainty, downside risks for sterling appear limited in the near term, particularly if Wednesday’s inflation data reinforces expectations of UK economic resilience.