If I had to pick one currency pair that is “warming up” in the most positive way, GBPUSD would easily be the standout. The news is lining up behind the British pound, and the technicals are opening the door for another bullish leg — everything is aligning perfectly for buyers.
From a news perspective, the market reacted positively to the UK’s Autumn Budget, with the OBR noting that the new fiscal plan helps reduce financial-risk pressure. This strengthens confidence in GBP. Meanwhile, the USD continues to weaken as expectations grow that the Fed may cut rates — a factor that makes it difficult for the dollar to stage a strong recovery. When one currency weakens due to fundamentals, the opposing currency — in this case the pound — naturally gains room to rise.
On the H4 chart, the bullish structure is very clean: price is moving inside an ascending channel, printing higher lows, and consolidating above the Ichimoku cloud — a highly important bullish signal. The 1.3170 zone is a confluence of horizontal support and the cloud’s lower boundary, making it an ideal area for a mild pullback before a continuation move. Above, the 1.3260 region stands as the nearest swing high and the most natural target for the next bullish wave.
My preferred scenario: GBPUSD may dip slightly toward 1.3170 to retest support, then gradually bounce and move upward toward 1.3260 following the channel structure. As long as price holds above 1.3170 and does not close an H4 candle below the cloud, I will continue to prioritize BUY setups, rather than attempt counter-trend sells.
From a news perspective, the market reacted positively to the UK’s Autumn Budget, with the OBR noting that the new fiscal plan helps reduce financial-risk pressure. This strengthens confidence in GBP. Meanwhile, the USD continues to weaken as expectations grow that the Fed may cut rates — a factor that makes it difficult for the dollar to stage a strong recovery. When one currency weakens due to fundamentals, the opposing currency — in this case the pound — naturally gains room to rise.
On the H4 chart, the bullish structure is very clean: price is moving inside an ascending channel, printing higher lows, and consolidating above the Ichimoku cloud — a highly important bullish signal. The 1.3170 zone is a confluence of horizontal support and the cloud’s lower boundary, making it an ideal area for a mild pullback before a continuation move. Above, the 1.3260 region stands as the nearest swing high and the most natural target for the next bullish wave.
My preferred scenario: GBPUSD may dip slightly toward 1.3170 to retest support, then gradually bounce and move upward toward 1.3260 following the channel structure. As long as price holds above 1.3170 and does not close an H4 candle below the cloud, I will continue to prioritize BUY setups, rather than attempt counter-trend sells.
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LEVEL UP YOUR TRADING
👉t.me/+aoROTvcQl3k4MzA1
Signals & setups to boost your edge
Free trading plans to follow
Real-time market insights
👉t.me/+aoROTvcQl3k4MzA1
Signals & setups to boost your edge
Free trading plans to follow
Real-time market insights
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.