07.05.202519:28 Forex Analysis & Reviews: GBP/USD. Analysis and Forecast

Today, the GBP/USD pair is pulling back from yesterday's bullish impulse. The retracement is supported by the modest strength of the U.S. dollar.

From a technical standpoint, the pair has shown resilience this week near the support level of 1.3260, bouncing off the 100-period exponential moving average on the 4-hour chart. Positive signals from oscillators, which remain in positive territory on the daily, hourly, and 4-hour charts, suggest a potential for buying near the 1.3300 level, while any further downside is likely to be contained around this zone.

However, a break below the key support at 1.3260 would make the pair vulnerable to a corrective decline from the highest level observed last year and in February 2022. In that case, spot prices could accelerate their fall toward the 1.3200 round number support, followed by 1.3170, and potentially decline further to the 1.3100 round number.

On the other hand, a breakout beyond the 1.3400 level will face some resistance near the multi-year high around 1.3445.

Sustained strength beyond that level could be seen as a fresh trigger for bulls, allowing the GBP/USD pair to retest the psychological 1.3500 level. A continued move north has the potential to reach the 1.3570–1.3575 area, en route to the next round number resistance at 1.3600.