Technical Analysis:
GBP/USD held steady on Thursday, closing up modestly at 1.3293 (+0.26%), buoyed by falling U.S. Treasury yields that broadly undermined the U.S. dollar. Sterling attempted yet again to reclaim the key 1.33 psychological barrier, but persistent selling pressure capped gains near the day’s high of 1.3319. The pair continues to gravitate around its neutral 10-day moving average at 1.3281, underscoring limited directional conviction amid a reduction in trade-driven volatility. Recent trading has clearly defined resistance just above 1.33, creating technical barriers that bulls must overcome decisively to sustain meaningful upside momentum.

Technical resistance immediately overhead remains at Thursday’s high at 1.3319, closely followed by the more significant May 14 peak at 1.3361. These levels have repeatedly rejected recent bullish attempts, highlighting strong technical resistance in the vicinity. A decisive breakout above 1.3361 would notably open the way toward the yearly high at 1.3445 (set on April 28), though such a breakout would likely require supportive economic data or a significant fundamental catalyst. Momentum indicators, such as daily RSI, remain neutral, suggesting a continuation of current range-bound conditions unless stronger directional catalysts emerge.

To the downside, key technical support begins at 1.3254, marking the May 15 daily low. Below this initial support, the 30-day moving average at 1.3214 offers firmer protection. Further declines beyond the 30-DMA could prompt a deeper correction toward the critical 50% Fibonacci retracement at 1.3079, calculated from the recent notable rally from 1.2712 to 1.3445. Fundamentally, markets now await forthcoming economic data from both the UK and the U.S. to provide clarity on inflation trends and central bank policy paths. With rate expectations relatively balanced through year-end 2025 according to LSEG’s IRPR, GBP/USD is likely to remain firmly anchored within its established 1.32–1.3450 trading range, encouraging range-bound strategies such as selling straddles or buying strangles to manage headline-driven volatility.