GBP/USD ended Tuesday near its opening level, closing around 1.3545 after a narrow trading session that saw resistance capped at 1.3550 and a 60-pip range over the past two sessions. The pair's price action reflected a lack of market conviction, with overlapping wicks and a broadly neutral intraday tone as it consolidated in a tight range. The Stochastic RSI on the 15-minute chart was deeply oversold near 2, suggesting recent downside pressure may be stretched, but no decisive shift in direction was observed. On the daily chart, GBP/USD maintained a constructive near-term bias, trading above both the 50-day EMA at 1.3459 and the 200-day EMA at 1.3391, indicating the broader uptrend remains intact despite moderating bullish momentum as the Stochastic RSI eased toward the midline near 47 [1].
With the UK economic calendar quiet through the weekend, GBP/USD's direction is expected to be driven primarily by US Dollar dynamics. The ongoing Iran conflict and the closure of the Strait of Hormuz have continued to support crude prices, with no clear ceasefire timeline emerging from diplomatic efforts this week. This has contributed to fragile risk sentiment, which historically favors the safe-haven US Dollar. Key US data releases included Tuesday's ISM Services PMI, which came in slightly soft at 53.6, and JOLTS job openings, which beat expectations at 6.87 million. The main upcoming US event is Friday's Non-Farm Payrolls (NFP) report, with consensus expecting a soft 60,000 print following the previous month's 178,000. A weaker NFP headline could provide a relief lift for GBP/USD, while an upside surprise would likely reinforce the current US Dollar bid [1].
Technically, initial support for GBP/USD is seen at the day's open of 1.3533, with a break below this level exposing further intraday weakness. The 50-day EMA at 1.3459 and the 200-day EMA at 1.3391 serve as deeper technical floors, where dip-buying interest may re-emerge if tested. With no nearby mapped resistance levels, any recovery attempts are expected to be driven by mean-reversion from oversold momentum rather than a defined topside barrier. The pair's immediate path will depend on buyers' ability to defend the moving-average cluster, as a sustained break below these levels would undermine the current bullish narrative [1].
CONCLUSION
GBP/USD remains rangebound amid a quiet UK data calendar, with US Dollar dynamics and upcoming US economic releases, particularly the NFP report, set to dictate near-term direction. Technical indicators suggest the broader uptrend is intact, but the pair's outlook hinges on risk sentiment and buyers' ability to defend key support levels.