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Market Update: GBP/USD Loses Momentum but Holds Bullish Position

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Aayush Jindal

Key Highlights

  • GBP/USD corrected gains from 1.3595 and traded below 1.3450.
  • A connecting bearish trend line is forming with resistance at 1.3500 on the 4-hour chart.
  • EUR/USD is struggling to continue higher above 1.1650 and might decline to 1.1520.
  • The US GDP could grow by 3.1% in Q2 2025 (Preliminary).

GBP/USD Technical Analysis

The British Pound corrected lower after it failed to surpass 1.3600 against the US Dollar. GBP/USD declined below the 1.3550 and 1.3500 support levels.

Looking at the 4-hour chart, the pair traded below the 38.2% Fib retracement level of the upward move from the 1.3139 swing low to the 1.3594 high. The pair even spiked below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

However, the pair is stable above the 1.3380 support and the 50% Fib retracement level of the upward move from the 1.3139 swing low to the 1.3594 high.

On the upside, the pair now faces resistance near 1.3485. The next key resistance sits at 1.3500. There is also a connecting bearish trend line forming with resistance at 1.3500 on the same chart. A close above 1.3500 could set the pace for another increase.

In the stated case, the pair could rise toward 1.3550, above which the bulls could aim for a move toward 1.3600. On the downside, immediate support is 1.3400. The next key support sits at 1.3365. Any more losses could send the pair toward the 1.3315 support zone.

Looking at EUR/USD, the pair started a fresh increase, but the bears protected gains above 1.1680, and the pair trimmed most gains.

Upcoming Key Economic Events:

  • US Initial Jobless Claims - Forecast 230K, versus 235K previous.
  • US Gross Domestic Product for Q2 2025 (Preliminary) – Forecast 3.1% versus previous 3.0%.
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