The GBPUSD pair is generating upward momentum after its recent drop, with the price testing resistance at 1.34800. It is moving within a corrective phase of the previous bearish trend that began in early October, showing increased buying activity near key levels. Current price action indicates a struggle between bulls and bears around this resistance.
Technical indicators confirm the bullish sentiment. The Stochastic Oscillator is showing a strong upward momentum, with room to advance before reaching overbought territory. The Chaikin Oscillator remains in the positive zone, signaling buyer dominance and a steady recovery. The RSI is in neutral territory, allowing the upward movement to continue without immediate reversal risks.
Meanwhile, fundamentals are sending mixed signals. On the one hand, the US dollar is getting weaker due to rising expectations of further rate cuts by the Federal Reserve (Fed). This setup underpins the GBPUSD pair. On the other hand, budget risks in the UK are weighing on the pound. Nevertheless, Britain's relatively resilient macroeconomic performance is providing temporary support for the national currency.
The pair's future trajectory largely depends on the bulls' ability to maintain their positions. If the current momentum holds and the closest resistance is breached, the pair has a strong chance of rising further toward 1.35500. However, fundamental risks persist, so a cautious stance is recommended. If the resistance is not breached, the price could pull back to 1.33900. At that level, bulls could regain their strength, while technical indicators leave the overbought zone, setting the stage for another attempt to break through the 1.34800 level.
Keep the following trading strategy in mind:
Buy GBPUSD near 1.33900. Take profit: 1.35500. Stop loss: 1.33300.
This forecast remains relevant between October 17 and October 24, 2025.
This content is for informational purposes only and is not intended to be investing advice.
