The U.S. dollar is gaining support following comments from Federal Reserve Chair Jerome Powell, who signaled that the central bank could pause its rate-cut cycle in December to assess the economic effects of earlier decisions. Moreover, many Fed officials favor a cautious approach as they continue to lack key economic data due to the ongoing government shutdown, while inflation remains well above the 2.0% target, limiting the regulator’s dovish stance.
Overall, the fundamental outlook supports further medium-term weakness in the GBP/USD pair.
Support and Resistance Levels
The instrument has consolidated below 1.3184 (Murray level [0/8], Fibonacci correction 38.2%) and may extend losses toward 1.2785 (Fibonacci correction 61.8%) and 1.2573 (Murray level [–1/8]). However, if the price consolidates above the middle Bollinger Band at 1.3306 (Murray level [5/8]), a bullish correction may develop toward 1.3550 (Murray level [7/8]) and 1.3672 (Murray level [8/8]).
Technical indicators maintain a sell signal: Bollinger Bands are turning downward, the MACD histogram is expanding in the negative zone, and the Stochastic oscillator is entering oversold territory — which allows for a short-term rebound.
Resistance levels: 1.3306, 1.3550, 1.3672.
Support levels: 1.2785, 1.2573.
GBP/USD Trading Scenarios and Forecast
Short positions can be opened from 1.3010 with targets at 1.2785 and 1.2573, and a stop-loss at 1.3130. Estimated duration: 5–7 days.
Long positions can be opened above 1.3306 with targets at 1.3550 and 1.3672, and a stop-loss at 1.3190.
Scenario
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 1.3010 |
| Take Profit | 1.2785, 1.2573 |
| Stop Loss | 1.3130 |
| Key Levels | 1.2573, 1.2785, 1.3306, 1.3550, 1.3672 |
Alternative Scenario
| Recommendation | BUY STOP |
| Entry Point | 1.3310 |
| Take Profit | 1.3550, 1.3672 |
| Stop Loss | 1.3190 |
| Key Levels | 1.2573, 1.2785, 1.3306, 1.3550, 1.3672 |