Technical Analysis:
GBP/USD ended Wednesday’s trading session with a loss of 0.44% at 1.3345, pulling back further from its April 28 peak of 1.3445. Despite this temporary setback, technical conditions remain supportive, evidenced by the pair’s repeated defense of its rising 10-day moving average at 1.3337. This key dynamic support has successfully cushioned GBP/USD on multiple occasions since late April, reinforcing the underlying bullish structure and suggesting that the recent retreat may provide attractive levels for renewed buying interest.

Immediate resistance for GBP/USD now resides at the ascending 100-hour moving average at 1.3355, with additional barriers situated at Wednesday's high of 1.3414 and the significant 2025 peak of 1.3445. A confirmed breakout above the 1.3445 level would signal a strong bullish continuation, enabling the pair to target further upside towards 1.3500 and potentially higher. Short-term technical indicators remain constructive overall, despite recent volatility, implying potential for a quick rebound as long as key supports hold.

On the downside, initial support remains at the critical 10-DMA at 1.3337, closely followed by Wednesday’s intraday low at 1.3310. Should selling pressures intensify, a deeper correction toward the stronger support at the April 23 low (1.3234) becomes possible. However, the medium-term bullish outlook will remain unchallenged unless GBP/USD decisively breaks below the pivotal 50% retracement level of the March-to-April rally at 1.3079. Given the market’s current tariff-driven volatility backdrop and positioning favoring potential GBP/USD upside, traders should remain vigilant for further technical signals favoring renewed bullish momentum.