GBP/USD Struggles Below 1.3500 as Bullish Momentum Fades

GBP/USD is showing signs of losing bullish momentum after failing to break cleanly above the 1.3500 resistance area, as traders continue balancing weaker U.S. dollar sentiment against cautious expectations for the Bank of England and Federal Reserve. Falling oil prices and easing geopolitical tensions have recently pressured the U.S. dollar, but markets remain cautious ahead of upcoming U.S. inflation data and Fed expectations, limiting stronger upside momentum in the pair.

Technically, GBP/USD formed a bearish reversal pattern near recent highs, suggesting buyers may be struggling to maintain control. Support around the 1.3400 area and the 200-day moving average is still helping limit downside pressure for now. However, a break below 1.3372 could expose a deeper pullback, while buyers would need a stronger move above 1.3500 to regain bullish momentum.

GBP/USD Daily Chart