The GBPUSD currency pair is showing signs of a short-term correction after the bulls’ failed attempt to break through the key resistance near 1.35900. Although it has been moving in an uptrend since early September, the current price of 1.35650 indicates a temporary weakening of buying momentum, highlighting a struggle between bulls and bears near local highs.
The technical setup also confirms a near-term correction to take place. The Stochastic Oscillator (5, 3, 3) is in neutral territory around the 71–80 range, with the %K line crossing above the %D one, which is a classic signal of slowing upward movement and potential short-term downward reversal.
Trading dynamics paint a similar picture. The On-Balance Volume (OBV) indicator has been showing a downtrend since late on September 11, with quotes plummeting amid modest buying.
Signals from volume and momentum indicators are amplified by the Chaikin Oscillator (3, 10), which peaked on September 11 and has since begun to decline. This technical picture, in tandem with the price drop, clearly indicates an outflow of buyer capital and a weakening of upward momentum. This is a strong argument in favor of the development of a technical correction.
Fundamentally, GBPUSD is supported by recent statistics from the US, with the mixed inflation report for August acting as a key factor. The Consumer Price Index (CPI) increased by 2.9% year-on-year. Earlier, the currency pair also received support from an unexpected surge in initial jobless claims to a four-year high, intensifying expectations of an imminent and aggressive rate cut by the Federal Reserve (Fed). This pressures the US dollar and favors long-term GBPUSD growth despite the current short-term correction.
Consider the following trading strategy:
Buy GBPUSD at the current price or while it corrects down to 1.35140. Take profit: 1.36600. Stop loss: 1.34800.
The forecast remains valid from September 12 to September 19, 2025.
This content is for informational purposes only and is not intended to be investing advice.
