GBP/USD Eyes Fresh Upside as New Falling Wedge Forms

GBP/USD formed a falling wedge early in 2026 and broke out strongly, rallying to fresh four-year highs. The move was partly driven by weakness in USD/JPY, but as the US dollar recovered, the pair pulled back.

Since those highs, another falling wedge has developed, similar to the current structure in EUR/USD. This keeps the door open for upside potential if the dollar weakens again.

Recently, 1.3500 provided support and triggered a bounce, while 1.3568 acted as strong resistance and pushed the price to a new lower low. Price is now trying to reclaim 1.3500. In the short term, a higher high has formed, and if buyers can hold a higher low above 1.3434, the case for further upside strengthens.

GBP/USD Daily Chart