News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Pound Bulls Reignite, Upside Target of 1.3950 in Sight
Forex
Summary:
The Great British Pound (GBP) fundamentals are at a crossroads of "economic recovery + policy easing expectations," while the US dollar (USD) faces dual constraints from "rate cut expectations + improved risk appetite." This dynamic is expected to drive GBP/USD higher.
Buy
CLOSEDGBPUSD
End Time
1.36073
Entry Price
1.39100
TP
1.35100
SL
1.34859 -0.00730 -0.54%
973
Points
Loss
1.35100
SL
1.35099
CLOSING
1.36073
Entry Price
1.39100
TP
Fundamentals
Recently, the UK economy has shown signs of recovery. The latest data reveals that the UK Services PMI rose sharply to 52.8 in June from 51.3 in May, marking the highest level since August last year, driven by sustained domestic demand and a surge in new business. However, firms remain cautious about hiring due to rising labor costs. The Composite PMI climbed from 50.7 to 52, indicating that the broader private sector continues to expand moderately while manufacturing remains under pressure. With easing price pressures and slower business cost growth, market expectations for a Bank of England rate cut in August have increased, especially as inflation has steadily declined from its peak with the May CPI annual rate dropping to 3.4% from 3.5%.
Meanwhile, risk appetite in the US is improving, weighing on the US dollar. The latest Fed meeting minutes showed that most officials support initiating rate cuts later this year, reiterating no urgency for further hikes. This has tempered market expectations for US dollar tightening. Additionally, the US Dollar Index dipped slightly to 97.40 on July 10th. As the US dollar's "safe-haven + yield advantage" weakens, capital is flowing out of dollar-denominated assets and into markets like the UK in search of higher returns and capital appreciation.
Regarding the UK's political and financial situations, the ruling party faces turbulence over welfare reforms and property tax decisions, leading to short-term pressure on the GBP. However, the recently signed UK-US trade deal has bolstered confidence in the UK's medium-to-long-term growth prospects.
Therefore, the UK is at an inflection point of "economic recovery + policy easing expectations," while the US dollar contends with "rate cut expectations + improving risk appetite," creating favorable conditions for GBP/USD upside.
Technical Analysis
As of the European session today, GBP/USD is trading at 1.3613, gradually rising after climbing over 33 pips from the intraday low of 1.3579. Both technical indicators and price action suggest continued bullish momentum.
Based on the daily chart, GBP/USD recently retraced to the rising trendline connecting previous lows and stabilized with a bullish doji candlestick yesterday, confirming a resumption of upward momentum. The moving averages are also arranged in a bullish formation, reinforcing the upside bias.
Regarding technical indicators, the RSI is in neutral-to-bullish territory, with its curve turning upward again, suggesting a higher likelihood of near-term gains.
On the upside, the first target is the previous high of 1.3788. A breakout above this level could propel GBP/USD toward the 1.3950 resistance zone. The recommended strategy is to buy the dips.
Trading Recommendations
Trading direction: Buy
Entry price: 1.3600
Target price: 1.3910
Stop loss: 1.3510
Valid Until: July 24, 2025, 23:00:00
Support: 1.3525/1.3370
Resistance: 1.3788/1.3950
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 © 2025 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.