GBP/USD outlook: Upward movement pauses around the 61.8% Fibonacci retracement level at 1.3600

GBP/USD Market Overview

GBP/USD is trading down by 0.1%, hovering close to 1.3545 during Thursday's European session. The pair is encountering resistance near the 1.3600 mark, with modest selling pressure emerging as the US Dollar (USD) rebounds from earlier losses, even though investor appetite for risk remains strong.

Currently, S&P 500 futures are up 0.2% at approximately 7,070, signaling positive market sentiment. Meanwhile, the US Dollar Index (DXY), which measures the USD against six major currencies, has risen 0.15% to around 98.20.

Optimism persists for risk assets, fueled by expectations that the US and Iran may soon reach a lasting ceasefire. However, no date has been set for further negotiations between the two countries.

Earlier Thursday, Pakistan’s foreign ministry announced that the schedule for additional US-Iran talks regarding a permanent ceasefire remains undecided.

UK Economic Data Update

Domestically, the United Kingdom’s monthly Gross Domestic Product (GDP) figures for February surpassed forecasts. According to the Office for National Statistics (ONS), the UK economy grew by 0.5%, outperforming the anticipated 0.1% increase.

Technical Insights: GBP/USD

At the time of writing, GBP/USD is trading lower near 1.3545. The pair remains above the 20-day exponential moving average (EMA) at 1.3410 and has reclaimed the 50% Fibonacci retracement level of the 1.3162–1.3872 range at 1.3517, indicating a positive short-term outlook.

The 14-period Relative Strength Index (RSI) stands at 61.4, suggesting bullish momentum without signaling overbought conditions. This implies that upward movement may continue as price action consolidates following the recent gains.

• Resistance Levels: Immediate resistance is at the 61.8% Fibonacci retracement at 1.3601, followed by the 78.6% level at 1.3720 and the cycle high near the 100% retracement at 1.3872.
• Support Levels: Initial support is at the 50% retracement at 1.3517, then the 38.2% level at 1.3433 and the 20-day EMA at 1.3410. A deeper decline could target the 23.6% retracement at 1.3329, with the structural support around 1.3162.

(This technical analysis was assisted by an AI tool.)