GBPUSD eyes key resistance before resuming downtrend

As of March 6, 2026, the picture on the daily GBPUSD chart is unmistakably bearish. The pair has been sliding since late January and is currently hovering near 1.33600, just above three-month lows. The last few sessions have seen prices fluctuate within a tight range—a sign that the market is catching its breath before taking another test of dynamic resistance. 

Technicals back up such a pause. The Chaikin Oscillator has crept into positive territory and is ticking higher, suggesting that accumulation is temporarily edging out distribution. What's more, trading volumes have picked up in recent days, which tell us there is real interest among market players, not just noise.

At the same time, the Relative Strength Index (RSI) is flirting with oversold territory. So when you pair it with the Chaikin's reversal and the volume spike, all the ingredients for a short-term technical bounce start to come together. Therefore, the most likely scenario over the next week is an attempted grind toward the upper rail of the descending channel, somewhere in the 1.34200–1.34700 zone. That is probably where bears are waiting for.

Taking a step back, the bigger picture still favors the dollar. Geopolitical tremors emanating from the Middle East—with the US and Israel squaring off against Iran—have sent oil prices climbing and the greenback flexing its safe-haven muscles. For some time now, this has been a consistent headwind for the pound. However, the British currency isn't completely helpless. The market has already priced out most expectations for a Bank of England (BoE) rate cut in March, which has taken some pressure off. Even so, the fundamental backdrop is far from being friendly. Weak construction data and a downgraded UK GDP forecast remind us that any rally from here will likely be short-lived.

Consider the plan for your trading down below: 

With GBPUSD approaching resistance near 1.34250, short positions on the pair offer a favorable risk-reward ratio. Lock in profits at 1.32690. Place Stop loss at 1.34700.

This forecast is relevant from March 6 till March 13, 2026.