- GBP/USD is in a vertical rally, rising marginally to a new high after upbeat UK GDP data.
- Short-term bias is positive, but caution is warranted as overbought signals emerge.
- Next resistance at 1.3665–1.3700; support at 1.3500.
GBP/USD tip-toed to a seven-week high of 1.3593 following stronger-than-expected UK GDP data for February, which showed a 0.5% m/m expansion versus forecasts of 0.1% and January’s flat reading. Despite the positive surprise, the reaction in the pair remained limited probably because the data did not capture the potential impact of the Iran war. Meanwhile, there was also a muted response to President Trump’s comments that the conflict with Tehran could end soon.
Nevertheless, the bulls continue to defend the 1.3550 region, maintaining a constructive outlook and keeping the focus on a potential move toward the 1.3665–1.3700 resistance zone. The pair has already advanced around 3.3% over the past two weeks, and sustained upside momentum could pave the way toward January’s 4½-year high of 1.3868.
Technically, the short-term bias remains skewed to the upside, with both RSI and MACD trending higher. However, the stochastic oscillator is firmly in overbought territory, increasing the risk of near-term consolidation or a corrective pullback. If selling pressure emerges, a break below 1.3500 could expose the 50- and 200-day SMAs near 1.3400, with additional support seen around 1.3300–1.3340.
In brief, GBP/USD maintains a bullish short-term bias, with further gains likely as long as price action holds above the key 1.3500 level.
