Technical Analysis:
GBP/USD staged a sharp reversal on Tuesday, closing robustly at 1.3298 for a notable 0.92% daily gain, propelled by hawkish remarks from BoE Chief Economist Huw Pill and softer-than-expected monthly U.S. core CPI figures. The pair rebounded strongly from a daily low at 1.3202, steadily climbing throughout European and North American sessions to briefly challenge important resistance at its 21-day moving average (1.3303/04). The sharp intraday reversal highlights improving bullish momentum as traders shift attention back to economic fundamentals and central bank policies following a period of tariff-driven volatility.

From a technical standpoint, the immediate test for GBP/USD is at Tuesday’s high and the pivotal 21-DMA at 1.3304. A convincing break above this resistance level could reignite bullish sentiment, enabling a push towards the May 6 peak at 1.3402. Above this point, the April 28 yearly high at 1.3445 remains the critical target for bulls. Technical momentum indicators such as the daily RSI have regained an upward bias, yet remain well short of overbought conditions, suggesting additional room for gains should bullish fundamentals persist, particularly if forthcoming UK CPI data reinforces Pill’s inflation concerns.

Immediate downside protection is defined clearly by the hourly Ichimoku cloud top at 1.3231, followed by the crucial 30-day moving average at 1.3199. A deeper retracement below this moving average and Tuesday’s intraday low at 1.3169 would temporarily dent bullish confidence, exposing firmer support at 1.3079—the 50% Fibonacci retracement level of the recent 1.2712–1.3445 rally. However, given the relatively symmetrical interest rate expectations between the Fed and the BoE, near-term sterling downside may be limited. Traders will likely continue buying dips, provided that Pill’s hawkish stance and overall risk sentiment remain supportive, keeping GBP/USD confined to its established trading range until clearer directional signals emerge.