GBP/USD Price Outlook – Trade Setup

📊 Technical Structure
GBPUSD GBP/USD remains under short-term pressure after failing to sustain gains above the 1.3643–1.3652 resistance zone.
Price has now retraced back toward the 1.3600–1.3610 support area, which aligns with prior demand and short-term structure support.
The pair is currently trading below the resistance band and showing lower highs on the intraday chart, suggesting fading bullish momentum.
As long as price stays below 1.3650, the short-term bias remains mildly bearish.

🎯 Trade Setup (Bearish Bias)
Entry Zone: 1.3643 – 1.3652
Stop Loss: 1.3655
Take Profit 1: 1.3610
Take Profit 2: 1.3600
Extended Target: 1.3585
Risk–Reward Ratio: Approx. 1:3.15
📌 Invalidation:
A sustained break above 1.3655 would invalidate the bearish structure and shift momentum back to the upside.

🌐 Macro Background
The British Pound remains pressured after softer UK Q4 GDP data.
Q4 GDP QoQ: 0.1% (vs 0.2% expected)
Industrial & Manufacturing Production also disappointed
This reinforces expectations of a Bank of England rate cut in March, weighing on GBP.
Meanwhile, strong US Nonfarm Payrolls data reduced expectations for a March Fed rate cut, supporting the US Dollar.
However, markets still price in at least two Fed cuts later in 2026, which may limit aggressive USD upside.
Traders now focus on US Initial Jobless Claims and Friday’s US CPI report for further direction.

🔑 Key Technical Levels
Resistance Zone: 1.3643 – 1.3652
Support Zone: 1.3601 – 1.3612
Breakdown Level: Below 1.3601
Upside Invalidation Level: Above 1.3655

📌 Trade Summary
GBP/USD is trading below resistance with weakening momentum.
Preferred strategy: Sell rallies below 1.3655, targeting a retest of 1.3600 support, while staying cautious ahead of US CPI.

⚠️ Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.