Key Highlights
- GBP/USD started a recovery wave above 1.3100.
- A major bearish trend line is forming with resistance at 1.3165 on the 4-hour chart.
- EUR/USD is consolidating above the 1.1565 support.
- The UK CPI could increase 3.5% in Oct 2025 (YoY).
GBP/USD Technical Analysis
The British Pound found support at 1.3000 and started a recovery wave against the US Dollar. GBP/USD climbed above 1.3050 and 1.3085.
Looking at the 4-hour chart, the pair settled above 1.3100 and the 23.6% Fib retracement level of the downward move from the 1.3471 swing high to the 1.3009 low. The pair tested the 100 simple moving average (red, 4-hour).
On the upside, the pair faces resistance near the 1.3170 zone. There is also a major bearish trend line forming with resistance at 1.3165. The first key hurdle sits at 1.3200. A close above 1.3200 might send the pair higher toward 1.3240 and the 50% Fib retracement level of the downward move from the 1.3471 swing high to the 1.3009 low.
The next resistance could be 1.3290 and the 200 simple moving average (green, 4-hour). Any more gains could set the pace for a steady increase toward 1.3350.
On the downside, there is a key support at 1.3110. The next support is 1.3080, below which the pair could start a steady decline to 1.3000. A close below 1.3000 could start a pullback toward 1.2850. Any more losses might open the doors for a test of 1.2740.
Looking at EUR/USD, the pair started a recovery wave above 1.1600 and now faces tough resistance near 1.1650.
Upcoming Key Economic Events:
- UK Consumer Price Index for Oct 2025 (YoY) – Forecast +3.5%, versus +3.8% previous.
- UK Core Consumer Price Index for Oct 2025 (YoY) – Forecast +3.4%, versus +3.5% previous.
