Meanwhile, the U.S. dollar is losing ground on fears of a possible government shutdown on Wednesday, as Democrats and Republicans in Congress failed to reach a compromise during negotiations. Analysts caution that this may delay the release of key macroeconomic reports, particularly September labor market data due Friday.
Support and Resistance Levels
The pair is attempting to resume growth within the medium-term uptrend, but needs to secure a breakout above the middle Bollinger Band around 1.3500. A successful breakout could open the way toward 1.3672 (Murray [8/8]) and 1.3794 (Murray [+2/8]). On the downside, the key bearish level remains 1.3306 (Murray [2/8]); a breakdown below this mark could trigger renewed selling toward 1.3184 (Murray [0/8], 36.2% Fibonacci correction) and 1.2975 (50.0% Fibonacci correction).
Technical indicators remain mixed: Bollinger Bands are turning lower, Stochastic is rising from oversold territory, while MACD holds steady in the negative zone.
Resistance levels: 1.3500, 1.3672, 1.3794.
Support levels: 1.3306, 1.3184, 1.2975.
Trading Scenarios and GBP/USD Forecast
Long positions may be considered above 1.3500, targeting 1.3672 and 1.3794, with a stop-loss at 1.3400. Implementation period: 5–7 days.
Short positions may be opened below 1.3306, targeting 1.3184 and 1.2975, with a stop-loss at 1.3390.
Scenario
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1.3500 |
| Take Profit | 1.3672, 1.3794 |
| Stop Loss | 1.3400 |
| Key Levels | 1.2975, 1.3184, 1.3306, 1.3500, 1.3672, 1.3794 |
Alternative Scenario
| Recommendation | SELL STOP |
| Entry Point | 1.3305 |
| Take Profit | 1.3184, 1.2975 |
| Stop Loss | 1.3390 |
| Key Levels | 1.2975, 1.3184, 1.3306, 1.3500, 1.3672, 1.3794 |