GBP/USD just turned lower from a major area of interest!
Does this make the pair ready for a longer-term bearish reversal?
Let’s get more clues from the daily time frame:
GBP/USD Daily Forex Chart by TradingView
In case you missed it, the U.K. just printed a cooler-than-expected CPI report in February. What’s more, the U.K.’s Office for Budget Responsibility (OBR) just halved its 2025 growth forecasts from 2.0% to 1.0% even as it raised its 2026 and 2027 growth estimates.
Meanwhile, the U.S. dollar is making safe haven pips rain thanks to U.S. tariff uncertainties and a positive U.S. durable goods report.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/USD has been trending higher for most of 2025, but its latest red candle below the 1.3000 psychological level is starting to cast doubt on whether the bullish run has more gas in the tank.
So far, the pair still can’t punch through the 1.3000 to 1.3100 zone. That area lines up with the R2 Pivot Point at 1.2980 and marks the top of a range on the daily chart.
Is this the beginning of a longer-term downtrend?
Keep an eye out for more red candlesticks and a steady trading below the 1.2900 psychological level.
If bearish momentum builds under this consolidation zone, it could trigger more selling and drag GBP/USD down toward the 1.2800 area near the R1 Pivot Point at 1.2778 and the 200 SMA. And if things really go south, the pair could even slip toward the mid-range support near 1.2600.
That said, it’s also possible that the bulls are just taking a breather.
If GBP/USD starts printing bullish candles again, we could see a push back to the 1.3000 resistance zone.
A strong move above 1.3100 might even pave the way for a run at the 1.3400 resistance level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!