GBPUSD is likely to climb further next week

The GBPUSD market is currently firing on all cylinders, driven by a steady stream of bullish signals and a textbook pattern of higher lows. An ascending trendline, connecting the local bottoms of late July (1.32723) and mid‑August (1.34792; 1.35223), is now near 1.35580. This level has proven to be reliable dynamic support, with the price bouncing off it multiple times—a clear sign that buyers are committed and the upward momentum is intact.

The Chaikin Oscillator backs up the bullish narrative. Despite a brief dip into negative territory on August 18, it remains comfortably in the green, confirming that bulls are still running the show. Nevertheless, the indicator's recent trajectory suggests that the impulse is slowly losing steam, which could pave the way for a short-term consolidation before the next leg higher. For traders, this is a yellow light: expect a potential breather before the rally resumes. In other words, the engine is still running—it just might need a quick pit stop. 

The Relative Strength Index (RSI) gives another evidence of proof. At around 72, it signals that buying pressure is in play, though it is inching closer to overbought conditions. The fact that it hasn't crossed 80 shows that the uptrend still has room to run, but it is a level worth monitoring. So, are we there yet? Not quite. 

On the fundamental side, the stars are aligning for sterling. The greenback is on shaky ground, weighed down by the US Treasury's decision to double its long‑term bond purchases—a move that has fueled concerns over swelling government debt and sent the dollar index tumbling to three‑month lows. And what is happening in the UK? Inflation has risen to 2.9%, and consumer sentiment is on the mend. These are the factors that strengthen the case for the Bank of England (BoE) to maintain its hawkish stance and add more fuel to the pound's rally.

For those looking to take action, here is the playbook: 

Buy the GBPUSD pair at around 1.36000. Lock in profits at 1.37000. Place Stop loss at 1.35680.

This forecast is valid from August 21 till August 28, 2026.