British Pound Short-term Outlook: GBP/USD Threatens Major Breakout
British Pound Technical Outlook: GBP/USD Short-Term Trade Levels
- British Pound attempting fourth daily advance- marks third attempt to breach 2024 highs
- GBP/USD risk for price inflection off this mark- U.S. Core PCE on tap into monthly close
- Resistance 1.3414/34, 1.3515 (key), 1.36- Support 1.3328, 1.3280, 1.3207 (key)
The British Pound is attempting to mark a fourth consecutive daily advance with GBP/USD once again rallying into critical resistance at the 2024 yearly high- moment of truth for the bulls. These are the levels that matter on the GBP/USD short-term technical charts.
Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Sterling technical setup and more. Join live on Monday’s at 8:30am EST.British Pound Price Chart – GBP/USD Daily
Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView
Technical Outlook: In last month’s British Pound Short-term Outlook, we noted that the, “rally off the yearly lows has extended into uptrend resistance at the yearly highs on building bearish momentum divergence- mounting risk for exhaustion here.” GBP/USD plunged more than 2.25% from the highs with price briefly registering an intraday low at 1.3140 before rebounding. The rally is once again approaching key resistance at the yearly highs and the focus is on possible price inflection off this key pivot zone with the bulls vulnerable while below.
British Pound Price Chart – GBP/USD 240min
Chart Prepared by Michael Boutros, Sr. Technical Strategist; GBP/USD on TradingView
Notes: A closer look at Sterling price action shows GBP/USD continuing to trade within the confines of an ascending pitchfork extending off the yearly low with 75% parallel catching the intraday highs yesterday. Resistance is being challenged again today at the 78.6% retracement of the 2021 decline / 2024 swing high around 1.3414/34 with the 2019 high at 1.3515- A topside breach / close above this threshold would be needed to fuel the next major leg of the advance towards the 1.36-handle and the 2022 high-day close (HDC) at 1.3705.
Initial support rests with the May open at 1.3328 and is backed closely by the objective weekly open at 1.3281. Near-term bullish invalidation is now raised to the April opening-range highs (ORH) at 1.3207- losses below this threshold would suggest a more significant high was registered this week / a larger Sterling correction is underway.
Bottom line: The British Pound is testing technical resistance again here and while the broader outlook remains constructive, the immediate focus is on a close above this level. From a trading standpoint, losses should be limited to the monthly open IF price is heading for a breakout on this stretch with a breach / close above 1.3515 ultimately needed to mark resumption of the yearly uptrend.
Keep in mind we are heading into an extended holiday weekend (Memorial Day) with key U.S. inflation data on tap into the close of the week / month. Stay nimble into the releases and watch the weekly closes here for guidance. Review my latest British Pound Weekly Forecast for a closer look at the longer-term GBP/USD technical trade levels.
Key GBP/USD Economic Data Releases
Active Short-term Technical Charts
- Australian Dollar Short-term Outlook: AUD/USD Breakout Imminent
- Gold Short-term Outlook: XAU/USD Bulls Defend Make-or-Break Support
- Canadian Dollar Short-term Outlook: USD/CAD Breakout Looms
- Euro Short-term Outlook: EUR/USD Recovery Stalls at Trend Resistance
- Swiss Franc Short-term Outlook: USD/CHF Bulls Tested at Resistance
- Japanese Yen Short-term Outlook: USD/JPY Rejected at Trend Resistance
- US Dollar Short-term Outlook: USD Bulls Steady After Fed Decision
--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com
Follow Michael on X @MBForex
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.
FOREX.com is a trading name of StoneX Financial Pty Ltd.
The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.
While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.
StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment and CFD investors do not own or have any rights to the underlying assets.
It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.forex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.forex.com/en-au/terms-and-policies/.
StoneX Financial Pty Ltd, Suite 42.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.
Delayed London Stock Exchange (LSE) Data
The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.
© FOREX.COM 2026