British Pound Short-term Outlook: GBP/USD Rally Halted at Resistance
Sterling surged more than 1.9% off the monthly low with the bulls stalling at resistance near multi-week highs. Battle lines drawn on the GBP/USD short-term technical.
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British Pound Technical Outlook: GBP/USD Short-Term Trade Levels
- British Pound rally stalls at multi-week resistance high- risk for exhaustion / price inflection
- GBP/USD weekly opening-range breakout imminent- US Core CPI on tap
- Resistance 1.3587/95 (key), 1.3648/50, 1.3745/49- Support 1.351.3417/32, 1.3370 (key)
The British Pound’s advance has faltered at a key resistance zone, with GBP/USD stalling near multi-week highs. The weekly range is carved out just below this barrier and highlights the near-term threat for a lager inflection in the days ahead. While the broader uptrend remains intact, the immediate focus is on a breakout here with major US data on tap tomorrow. Battle lines drawn 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 August rally was vulnerable into technical resistance and that, “losses would need to be limited to 1.3370 IF Sterling is heading higher on this stretch with a close above 1.3650 ultimately needed to mark uptrend resumption.” GBP/USD plunged more than 1.9% off the August high and despite briefly registering an intraday low at 1.3333, the bears were unable to mark a daily close below the June low. The subsequent rally has now extended a more than 1.9% with the September opening-range now set below multi-month swing highs.
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 trading within a proposed ascending pitchfork with the median-line highlighting near-term support at the objective monthly open at 1.3504. A break below this slope would threaten a deeper pullback within this formation with subsequent support seen at 1.3417/32 and the June low at 1.3370- losses should be limited to this threshold for the August advance to remain viable.
A topside breach / close above the July swing high / August high at 1.3587/95 would threaten uptrend resumption toward subsequent resistance objectives at the 2025 high-week close (HWC) / 78.6% retracement of the June decline at 1.3648/50. The next major technical consideration is eyed at the yearly high-day close (HDC) / 2022 high at 1.3745/49- look for a larger reaction there IF reached.
Bottom line: The British Pound is testing resistance at multi-month highs with the weekly opening-range taking shape just below- risk for exhaustion / price inflection off this mark. From a trading standpoint the focus is on a breakout of the 1.3505-1.3587 range for guidance- ultimately, losses would need to be limited to the June lows IF price is heading higher on this stretch with a close above the monthly swing highs needed to mark uptrend resumption.
Keep in mind we get the release of key inflation data tomorrow with the US Consumer Price Index (CPI) on tap. Stay nimble into the release and watch the weekly close 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
--- Written by Michael Boutros, Sr Technical Strategist
Follow Michael on X @MBForex
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