GBP/USD is showing increasing short-term selling pressure after repeatedly failing to sustain a move above the 1.3520–1.3525 resistance zone. Price pushed higher into this supply area but faced strong rejection, leaving a clear sign that sellers are still defending the upper levels.
📊 Fundamental Context
The major event today was the U.S. CPI release. Ahead of the release, traders were positioning cautiously around GBP/USD and the 1.3500 psychological level.
The latest U.S. CPI data came broadly in line with expectations and initially weakened the USD. Therefore, the fundamental picture does not currently provide a simple reason to chase GBP/USD short positions.
📉 Technical Outlook
The repeated rejection from the upper resistance zone, combined with the developing wedge structure, keeps the short-term setup under pressure. However, traders should wait for confirmation rather than assuming that every rejection will immediately lead to a large decline.
📌 Key Levels
- 🔴 Resistance Zone: 1.35250 – 1.35400
- 🟢 Support Level: 1.34513
- 🟢 Support Level: 1.34204
🔴 Bearish Scenario
The bearish idea is primarily based on the technical rejection and price structure shown on the chart.
If GBP/USD fails to reclaim the 1.3511–1.3525 area and sellers maintain control below 1.3490, the downside levels around 1.3451 and 1.3420 remain important areas to watch.
💡 Market View
GBP/USD remains under short-term pressure while price stays below the key resistance zone. However, confirmation is important, particularly given the mixed fundamental backdrop following the U.S. CPI release.
Market View: The short-term bias remains bearish below 1.3511–1.3525, with 1.3490 acting as an important level for downside confirmation. Traders may monitor 1.3451 and 1.3420 as potential support areas.
⚠️ Risk Warning: Technical and fundamental analysis does not guarantee future price movements. Currency markets can experience significant volatility around economic data releases. Traders should use appropriate risk management and consider market conditions before making trading decisions.
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