The GBP/USD currency pair experienced a modest decline of 0.1%, trading near 1.3545 during the European session on Thursday, as its recent rally was halted by resistance at the 61.8% Fibonacci retracement level around 1.3600 [1]. The pair faced slight selling pressure as the US Dollar (USD) regained strength, with the US Dollar Index (DXY) rising 0.15% to approximately 98.20, despite an overall risk-on market sentiment [1]. S&P 500 futures were up 0.2% at 7,070, reflecting continued optimism in broader markets [1].
Market sentiment was buoyed by hopes for a potential permanent ceasefire announcement between the United States and Iran, although no date for further talks has been finalized, according to Pakistan’s foreign ministry [1]. On the UK economic front, the Office for National Statistics (ONS) reported that monthly Gross Domestic Product (GDP) for February grew by 0.5%, surpassing expectations of a 0.1% increase [1]. This stronger-than-anticipated GDP reading is generally considered bullish for the Pound Sterling (GBP) [1].
From a technical perspective, GBP/USD remains above the 20-day exponential moving average (EMA) at 1.3410 and has reclaimed the 50.0% Fibonacci retracement at 1.3517, suggesting a constructive near-term bias [1]. The Relative Strength Index (14) stands at 61.4, indicating bullish momentum without overbought conditions, while resistance is noted at 1.3601 (61.8% Fibonacci), with further levels at 1.3720 and 1.3872 [1]. Support is identified at 1.3517, 1.3433, and 1.3410, with deeper pullbacks potentially targeting 1.3329 and 1.3162 [1].
CONCLUSION
GBP/USD's rally has paused near a key technical resistance level, despite a stronger-than-expected UK GDP print. While the pair maintains a constructive technical outlook, the immediate market reaction is tempered by a firmer US Dollar and ongoing geopolitical uncertainties. The overall sentiment remains cautiously optimistic, with further upside possible if risk appetite persists and technical barriers are cleared.