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GPB/USD – Weekly remains in a bullish trend, with a Fibonacci upswing in play. Completion of the Fibonacci upswing at the D EXT 1.37410 area. Currently, Sterling has found RES at the bracket high. PSAR is bullish, and Sterling is trading above both ST and LT EMA’s.

Daily – Sterling was swiftly rejected twice at a former DVAH RES area. Likely forming a new Bracket area of trade. Bulls are trading above the 8EMA. RES at the upper DEV band is currently being tested. Bulls are in a major FIB upswing with a 78.6 C retrace, 1.38760 would be the FIB D EXT. There remain multiple key RES areas ahead to achieve that objective. 1.36595 would be the next upside objective on an accepted drive of the current bracket high.

Federal Reserve minutes sent a clear message that the forecast for 2025 and 2026 is weaker off the back of sweeping global tariffs and said the economy is “cooling and preventive measures are necessary”. Indicating one or two interest cuts of 25 basis points likely before the year end.

Short-term softening of GBP has been seen this week after pulling back from recent highs of 1.36. Overall bullish momentum is likely to continue on the Fed's weaker outlook for the economy. Further offloading of US assets would also bolster the Sterling trade, and the IMF has also raised its UK GDP growth slightly for the year to 1.2%. Traders are now digesting the impact the US court’s decision on tariffs will have.

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