GBP/USD Analysis Today 01/05: Chances for Strength (Chart)

  • For two consecutive trading sessions, the British pound has retreated from its recent highs against the US dollar, but this weakness is likely temporary.
  • The GBP/USD price is stabilizing around the support level of 1.3278 at the time of writing the analysis, giving up the gains of the sharp upward shift that reached the resistance level of 1.3444.
  • According to licensed trading platforms, the US dollar’s value has risen, and stock markets declined during mid-week trading as investors questioned the weak US GDP report that showed an economic contraction in the first quarter (-0.2% quarter-on-quarter)

image

US Dollar Stronger Despite Economic Recession

According to Forex market trading, the US dollar has recovered despite the announcement of a US economic recession. As announced, this was its first decline in three years, disappointing markets that had expected a stable reading after the fourth-quarter 2024 reading of 0.4% quarter-on-quarter. According to economic experts, stagflation concerns were reinforced by yesterday’s data, which showed an unexpected contraction in US GDP during the first quarter, alongside a surprisingly large jump in core personal consumption expenditures (PCE) prices.

At the same time, the disappointment was reflected in the S&P 500 stock index, which is trading lower today along with other major US exchanges. In 2025, the dollar and US stocks have tended to decline together, meaning the US dollar’s rise is surprising and raises questions about whether the dollar is regaining its safe-haven status. It is too early to say for sure, as today is the last day of the month, and end-of-month and quarter flows are likely to affect the market. Currency analysts have indicated that the US dollar is expected to rise.

Trading Tips:

Dear TradersUp follower, keep in mind that the British pound will remain supported by positive sentiment and the good performance of financial markets.

The dollar’s strength also suggests that the US GDP data was not as bad as the headline decline indicates, given some large distortions caused by importers anticipating Trump’s tariffs.

Will GBP/USD Rise in the Coming Days?

Recently, the US dollar’s rally has seen the GBP/USD exchange rate fall further from its three-year high of 1.3444. When it reached this level on Tuesday, we had warned of a strong horizontal resistance level that could cause a setback for the pound. This resistance has proven its strength, and the GBP/USD decline extends below the 1.33 support level. For now, strategists are maintaining a “buy the dip” mentality.

Technical Analysis for the GPB/USD pair today:

On the technical indicator front, according to the performance on the daily timeframe chart, the 14-day RSI is heading towards the midline, confirming the start of downward shifts awaiting more momentum, while the MACD is at the beginning of a downward shift. The performance of GBP/USD today will be affected by the announcement of the UK Manufacturing PMI and Net Lending to Individuals in Britain at 11:30 AM Egypt time. Later, US economic releases will follow, with the US weekly jobless claims announced at 01:30 PM Egypt time, and then the ISM Manufacturing PMI reading at 05:00 PM Egypt time.

In addition, investor sentiment regarding risk appetite will also influence the performance of the British pound against the US dollar in the coming trading hours.

Ready to trade our GBP/USD Forex analysis? Here are the best regulated trading platforms UK to choose from

Source link

Visited 1 times, 1 visit(s) today

Related Article

EUR/USD Tests Support—Can It Recover And Resume Upside?

EUR/USD Tests Support—Can It Recover And Resume Upside?

Key Highlights EUR/USD corrected gains and tested the 1.1665 support. A bullish trend line is forming with support at 1.1690 on the 4-hour chart. GBP/USD could continue to move higher toward the 1.3620 resistance. Gold prices are stuck in a range below the $4,800 resistance. EUR/USD Technical Analysis The Euro started a downside correction from

GBP/USD Builds Momentum While EUR/GBP Dips Once More

GBP/USD Builds Momentum While EUR/GBP Dips Once More

GBP/USD is showing positive signs above 1.3500 and 1.3525. EUR/GBP declined and is now consolidating losses below 0.8700. Important Takeaways for GBP/USD and EUR/GBP Analysis Today The British Pound started a fresh increase above 1.3500 to enter a positive zone. There was a break above a key bearish trend line with resistance at 1.3510 on

CFI trading volumes hit record $2.3 trillion in Q1 2026

CFI trading volumes hit record $2.3 trillion in Q1 2026

Leading online trading services provider CFI Financial Group has announced that it started 2026 with its strongest quarter to date, recording trading volumes of USD $2.3 trillion. This represents an 11% increase compared to Q4 2025,and an 81% rise year-on-year, building on the momentum of a strong 2025, where total volumes reached USD $6.4 trillion.

USD/CAD Daily Outlook - ActionForex

USD/CAD Daily Outlook – ActionForex

Daily Pivots: (S1) 1.3651; (P) 1.3683; (R1) 1.3705; More… Intraday bias in USD/CAD stays neutral and more consolidations could be seen above 1.3629. Further decline is expected with 1.3729 resistance intact. On the downside, sustained trading below 61.8% retracement of 1.3480 to 1.3965 at 1.3665 will pave the way to retest 1.3480 low. Nevertheless, break

USD/CHF Daily Outlook - ActionForex

USD/CHF Daily Outlook – ActionForex

Daily Pivots: (S1) 0.7837; (P) 0.7858; (R1) 0.7870; More…. Intraday bias in USD/CHF remains neutral for the moment. Further decline is expected as long as 0.7933 resistance holds. On the downside, sustained break of 61.8% retracement of 0.7603 to 0.8041 at 0.7770 will pave the way to retest 0.7603 low. However, break of 0.7933 resistance

Table of prices silver 26/04/2026

Weekly Pairs in Focus 26th April to 1st May 2026 (Charts)

Created on April 26, 2026 Silver The silver market has fallen pretty significantly during the course of the week as interest rates continue to be a main driver. After all, we are in a situation where a lot of traders just don’t know what to do with the risk coming out of the Middle East

EUR/USD Weekly Forecast 26/04: Unstable Range (Chart)

EUR/USD Weekly Forecast 26/04: Unstable Range (Chart)

Created on April 26, 2026 The U.S Federal Reserve will release its FOMC Statement this coming weekend and is not expected to change the Federal Funds Rate. Now that this bit of information is out of the way, day traders should continue to focus on sentiment shifts developing because of the lack of clarity regarding

Forex Trading Platform Market Analysis By Application, Type,

Forex Trading Platform Market Analysis By Application, Type,

The Forex Trading Platform Market reached a valuation of 12.43 billion in 2025 and is anticipated to expand at a CAGR of 10.11% during the forecast period from 2026 to 2033, ultimately attaining an estimated value of 26.86 billion by 2033. Market growth is being driven by increasing demand across industrial, commercial, and technology-oriented applications,

RMB hiking play in forex options mkt

RMB hiking play in forex options mkt

A billboard in Shanghai displays renminbi”s foreign exchange rates. China Daily The renminbi’s rising prominence in global foreign exchange options is not an isolated development, but part of a broader, accelerating expansion of the Chinese currency’s international role across investment, financing and commodity pricing, analysts said. According to the London-based clearing house LCH, the yuan

EUR/CHF Weekly Outlook - ActionForex

EUR/CHF Weekly Outlook – ActionForex

EUR/CHF edged lower to 0.9159 last week but recovered just ahead of 0.9155 support. Outlook is unchanged and initial bias remains neutral this week for more consolidations below 0.9264. Further rally is expected with 0.9155 support intact. On the upside, firm break of 0.9264 will resume the rise from 0.8979 to 0.9394 resistance next. However,

EUR/GBP Weekly Outlook - ActionForex

EUR/GBP Weekly Outlook – ActionForex

EUR/GBP’s extended decline last week suggests that rebound from 0.8610 has completed at 0.8740 already. But as a temporary low was formed at 0.8652, initial bias stays neutral this week first. On the downside, below 0.8652 will resume the fall from 0.8740 to retest 0.8610 support next. Nevertheless, firm break of 0.8685 support turned resistance

EUR/JPY Weekly Outlook - ActionForex

EUR/JPY Weekly Outlook – ActionForex

EUR/JPY stayed in sideway trading last week and the development suggests that it’s merely in a near term consolidations. Initial bias remains neutral this week first. In case of another fall, downside should be contained by 38.2% retracement of 182.56 to 187.93 at 185.87 to bring rebound. On the upside, firm break of 187.93 will

USD/CAD Weekly Outlook - ActionForex

USD/CAD Weekly Outlook – ActionForex

USD/CAD fell to as low as 1.3629 last week but recovered since then. Initial bias remains neutral this week first. On the downside, sustained trading below 61.8% retracement of 1.3480 to 1.3965 at 1.3665 will pave the way to retest 1.3480 low. Nevertheless, break of 1.3729 minor resistance will turn bias back to the upside

USD/JPY Weekly Outlook - ActionForex

USD/JPY Weekly Outlook – ActionForex

USD/JPY extended consolidations below 160.45 last week and outlook is unchanged. Initial bias remains neutral this week. Further rise is expected with 157.49 cluster support (38.2% retracement of 152.25 to 160.45 at 157.31) intact. On the upside break of 160.45 will target a retest on 161.94 high. However, firm break of 157.31/49 will bring deeper

USD/CHF Weekly Outlook - ActionForex

USD/CHF Weekly Outlook – ActionForex

USD/CHF turned into consolidations last week and recovered, but overall outlook is unchanged. Initial bias remains neutral this week first. On the downside sustained break of 61.8% retracement of 0.7603 to 0.8041 at 0.7770 will pave the way to retest 0.7603 low. However, break of 0.7933 resistance will bring stronger rise back to retest 0.8041

EUR/USD Weekly Outlook - ActionForex

EUR/USD Weekly Outlook – ActionForex

EUR/USD’s gyrated lower last week but recovered ahead of 1.1662 support. Initial bias remains neutral this week first, and further rise is in favor. On the upside, sustained trading above 61.8% retracement of 1.2081 to 1.1408 at 1.1824 will pave the way to retest 1.2081 high. However, firm break of 1.1662 support will indicate the

EUR/AUD Weekly Outlook - ActionForex

EUR/AUD Weekly Outlook – ActionForex

EUR/AUD’s fall from 1.6842 extended lower to 1.6340 last week. But a temporary low should be in place on loss of momentum. Initial bias is turned neutral this week first. Further decline is expected as long as 1.6497 support turned resistance holds. Below 1.6340 will target a retest on 1.6125 low. Nevertheless, firm break of

0
Would love your thoughts, please comment.x
()
x