GBP/USD holds gains but faces strong resistance at 1.2475
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The British Pound has rebounded sharply against the US Dollar, climbing from 1.2249 to 1.2455. However, the rally now faces strong resistance at 1.2475, limiting upside potential in the short term. Analysts expect range-bound trading between 1.2245 and 1.2530 in the coming weeks as market momentum remains uncertain.
GBP/USD Stabilizes After Sharp Reversal
Following a steep drop to 1.2249, GBP/USD staged a strong rebound, reclaiming lost ground and approaching key resistance levels. The UOB Group highlights that while the rally could extend further, a clear break above 1.2475 remains unlikely. Support levels are set at 1.2380 and 1.2330, which could offer downside protection if selling pressure returns. Meanwhile, major resistance is seen at 1.2530, which is not expected to be tested in the near term.
Short-Term Outlook: Sideways Trading Expected
Despite the recent volatility, downward momentum has weakened, suggesting that GBP/USD will likely trade within a defined range of 1.2245-1.2530. The lack of strong directional bias indicates that traders will look to key technical levels for short-term opportunities.
Market Focus: Economic Data and Policy Signals
Investors remain cautious ahead of key US economic data and further signals from the Federal Reserve and Bank of England. The market is closely watching inflation trends and monetary policy shifts, which could drive the next major move for GBP/USD. For now, range-bound trading remains the dominant theme, with short-term resistance at 1.2475 acting as a key decision point for traders.
GBP/USD Stabilizes After Sharp Reversal
Following a steep drop to 1.2249, GBP/USD staged a strong rebound, reclaiming lost ground and approaching key resistance levels. The UOB Group highlights that while the rally could extend further, a clear break above 1.2475 remains unlikely. Support levels are set at 1.2380 and 1.2330, which could offer downside protection if selling pressure returns. Meanwhile, major resistance is seen at 1.2530, which is not expected to be tested in the near term.
Short-Term Outlook: Sideways Trading Expected
Despite the recent volatility, downward momentum has weakened, suggesting that GBP/USD will likely trade within a defined range of 1.2245-1.2530. The lack of strong directional bias indicates that traders will look to key technical levels for short-term opportunities.
Market Focus: Economic Data and Policy Signals
Investors remain cautious ahead of key US economic data and further signals from the Federal Reserve and Bank of England. The market is closely watching inflation trends and monetary policy shifts, which could drive the next major move for GBP/USD. For now, range-bound trading remains the dominant theme, with short-term resistance at 1.2475 acting as a key decision point for traders.