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
