Intel surges as Nvidia takes $5B stake
GBP/USD closed at 1.3642, after hitting an intraday high of 1.3660 and a low of 1.3639. The pair is showing steady upside momentum as it trades above its key moving averages, supported by improving risk sentiment and broad USD softness.
Key Technical Observations
- Moving Averages Support Upside
The 15-day moving average (1.3532) and 20-day moving average (1.3517) are both sloping upward, with price comfortably above them – confirming short-term bullish momentum. - Uptrend Continuation
The pair has been carving out higher lows and higher highs since bottoming earlier in the year. Recent price action shows strong demand on dips near the 1.3450–1.3500 zone. - RSI Bullish but Not Overbought
The RSI stands at 61.79, suggesting momentum is positive but not yet in overbought territory – leaving room for further gains. - Approaching Resistance
Price is now testing the 1.3650–1.3700 region, which previously acted as a resistance ceiling. A sustained break here could open the door for stronger gains.
Macro & Market Context
- Dollar Weakness: The USD remains under pressure as U.S. yields cool and expectations for Fed rate cuts persist.
- BoE Policy Outlook: The Bank of England’s cautious stance and inflation dynamics continue to lend support to GBP.
- Risk Sentiment: Equities and commodity-linked assets strengthening has further weighed on the safe-haven dollar.
Key Levels to Watch
- Immediate Resistance: 1.3700 – key breakout level.
- Next Resistance: 1.3800 – psychological round number and prior peak.
- Immediate Support: 1.3530 – 15-day moving average.
- Breakdown Support: 1.3450 – strong horizontal support.
Bias: Bullish
Momentum favours the bulls while the pair trades above 1.3530. A break above 1.3700 would likely accelerate gains toward 1.3800, while a failure to sustain above 1.3530 would weaken the structure.
Dips toward 1.3530–1.3550 may offer buying opportunities with tight stops, while a confirmed breakout above 1.3700 could provide momentum setups targeting 1.3800. Caution is warranted if price slips back under 1.3500, as this would shift control back to sellers.
