GBP/USD Tests Key Resistance as Traders Await U.S. Jobs Data

GBP/USD has rebounded strongly from its recent pullback and is now testing a key resistance zone around 1.3475, near the yearly open. This area is likely to determine the pair’s next major move. A sustained break above resistance would signal that the broader uptrend is resuming, while failure to break higher could leave the pair vulnerable to a deeper correction.

On the upside, a breakout could target 1.3534 - 1.3572. However, bulls need to maintain support above 1.3370 to keep the positive outlook intact. A daily close below this level would suggest a larger reversal is developing, exposing support at 1.3300.

The technical picture remains cautiously bullish, but traders are awaiting confirmation from the resistance test. Upcoming U.S. labour market data, including today's ADP employment and Friday's Non-Farm Payrolls report, could provide the catalyst for the next breakout or reversal. Overall, GBP/USD is at a critical technical crossroads with the next move likely to set the tone for the weeks ahead.

GBP/USD Daily Chart