News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
GBP/USD 1.3380: Can Buyers Turn the Pullback
Forex
Summary:
GBP/USD is trading around 1.3390, after recovering from the recent decline toward 1.3340. The proposed 1.3380 BUY sits close to the current market pivot...
Buy
CLOSEDGBPUSD
End Time
1.33800
Entry Price
1.34150
TP
1.33550
SL
1.33165 -0.00264 -0.20%
250
Points
Loss
1.33550
SL
1.33548
CLOSING
1.33800
Entry Price
1.34150
TP
Overview
GBP/USD has stabilized after last week's sharp decline. The pair fell through 1.3435 and reached the 1.3340 area before recovering, with current pricing around 1.3390. Recent technical analysis identifies 1.3380–1.3406 as an important pullback zone, while 1.3435–1.3450 represents a larger resistance/retest area. This makes 1.3380 interesting for a tactical BUY because the pair is attempting to stabilize above the recent low rather than continuing immediately toward 1.3300.
The fundamental picture provides some support for sterling. UK August retail sales increased 0.5% month-on-month versus expectations for a 0.2% decline, while annual growth reached 2.4%. The stronger consumer data have increased expectations that the BoE could resume tightening later in 2026. However, the Fed's recent 25-bp hike and hawkish communication continue to support USD, meaning GBP/USD needs genuine technical confirmation before a recovery can extend.
Market Sentiment
Sterling sentiment has improved modestly after the sharp selloff, but the broader market is still cautious. The BoE held rates at 3.75% at its latest meeting and warned that inflation could exceed 4% in early 2027 if energy-price pressures persist. Markets subsequently increased expectations for future UK rate hikes, with roughly a 65% probability of a November increase reported after the strong retail-sales data.
Against this, the dollar retains an important yield advantage. The Fed has already raised rates and signalled that additional tightening may be necessary, while current pricing puts the probability of another October hike around 56.5%. Therefore, the BUY at 1.3380 is better understood as a technical rebound trade rather than a confirmation that the broader GBP/USD downtrend has reversed.
The key sentiment shift would come if GBP/USD can reclaim 1.3405 and then 1.3435. Failure around these levels would leave the recent bearish structure intact.
Technical Analysis
On M15, 1.3380 sits inside the 1.3380–1.3406 recovery zone identified by recent technical analysis. The pair is attempting to recover after establishing a low around 1.3340, while the larger bearish structure remains below 1.3435.
With Bollinger Bands (20,0,2), the preferred BUY setup is for price to stabilize near the lower-to-middle band around 1.3380 and then expand upward. Because the pair has already bounced from 1.3340, buying an extended M15 candle near 1.3400 would create worse timing. A controlled retest of 1.3380 followed by bullish price action is preferable.
For Ichimoku (9,26,52), buyers need to reclaim the Tenkan-sen and challenge the Kijun-sen. A bullish Tenkan/Kijun cross with price moving into the cloud would provide stronger evidence that the correction is developing into a recovery. If the cloud continues to reject price around 1.3405–1.3435, the BUY remains vulnerable.
The Stochastic (5,3,3) should ideally turn upward from the lower zone around the entry. A bullish crossover while price holds above 1.3370 would provide momentum confirmation. If Stochastic rolls over while GBP/USD repeatedly fails near 1.3405, the rebound would look increasingly corrective.
The first upside objective is 1.3415, with 1.3440 as the next extension. Recent technical analysis identifies 1.3435–1.3450 as an important resistance/retest region, while a break below 1.3323 would reopen the broader downside structure.
Trade Recommendation
Entry: 1.3380
Take Profit: 1.3415
Stop Loss: 1.3355
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.