British Pound Outlook: GBP/USD Falling Wedge 2.0 in 2026
The British Pound was flying high just a month ago on the way to fresh four-year highs but GBP/USD has funneled into a falling wedge since then with a massive test at the 1.3500 psychological level.
Share this:
In early-2026 trade GBP/USD built a falling wedge formation shortly after the New Year open, and that resolved in a big way with a strong breakout as the pair jumped up to fresh four-year highs. But, like EUR/USD, this seemed a derivative matter on the basis of the breakdown in USD/JPY and as the Dollar came back to life, GBP/USD pulled back.
But, from those fresh highs has been yet another falling wedge formation. Again, this is quite similar to the backdrop in EUR/USD and I looked at that little earlier today. At this point I think a case can be made for upside in both markets and they would both be attractive ways to work with USD-weakness.
I looked at that in the weekend video and I’ll update again in the webinar tomorrow with live charts, and if you’d like to attend that you’re welcome to sign up from the link below:
The Price Action Webinar with James Stanley
GBP/USD Daily Chart
Chart prepared by James Stanley; data derived from Tradingview
In last Tuesday’s webinar I looked at the 1.3500 level in the pair that led to a bounce, but it was the 1.3568 resistance level that held bulls at bay and eventually drove down to a fresh lower-low. As of this writing, it appears that GBP/USD is trying to re-claim that 1.3500 handle but on a short-term basis there is now a higher-high, and if buyers can hold a higher-low above last week’s swing of 1.3434 the door for upside setups could open a bit more.
GBP/USD Four-Hour Chart
Chart prepared by James Stanley; data derived from Tradingview
--- written by James Stanley, Senior Market Analyst, Global Macro
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD, GBP/USD Outlook: RSI Hits 2020 Oversold Levels
EUR/USD, GBP/USD Outlook: The EUR/USD daily RSI has fallen to oversold levels last seen in 2020, raising the risk of a reversal across correlated currency pairs, including the US dollar and GBP/USD.
British Pound Technical Outlook: GBP/USD Rebound Challenges September Downtrend 9 30 2026
Sterling has rallied sharply from key support, with GBP/USD at an inflection point that could determine whether a larger recovery is underway.
GBP/USD, Oil Forecast: Two trades to watch 300926
GBP/USD: Can Stronger UK Growth Offset the Dollar’s Advantage? Oil: Supply Recovery Challenges the Geopolitical Premium.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.