GBP/USD price consolidates in a tight range ahead of potential breakout
GBP/USD consolidates within a symmetrical pattern as bulls eye 1.3510 breakout
The British pound has continued to show resilience against the U.S. dollar, with GBP/USD stabilizing around 1.3450 after testing the 1.3560 resistance zone. A broader retracement from the 2014 highs has seen the pair find support above the 0.382 Fibonacci retracement level at 1.2967, with bulls targeting the next key resistance near the 0.5 retracement level at 1.3774. This suggests a long-term base formation, provided the pair can maintain stability above the psychological 1.30 level.
Highlights
- GBP/USD stabilizes above the 0.382 Fibonacci retracement, with resistance near 1.3560.
- Short-term support sits at 1.3450, and a break above 1.3510 could trigger further gains.
- The broader bullish trend remains intact as long as price holds above 1.3400–1.3450.
On the daily chart, the price remains comfortably above the key trendline that has supported the rally from April lows. The 1.3350–1.3400 zone has consistently acted as a demand area, while the recent rejection at 1.3560 suggests a short-term ceiling.
GBP/USD price dynamics (Source: TradingView)
The latest candles indicate consolidation, with smaller bodies signaling indecision and short-term exhaustion after a strong rally. A clean break above 1.3560 would signal a continuation toward 1.3630 and 1.3770. Conversely, failure to hold above 1.3350 could expose deeper corrections toward 1.3139.
Short-term indicators signal a bullish continuation
On the 4-hour chart, GBP/USD has been coiling beneath short-term trendline resistance. A breakout above 1.3510 would invalidate the minor descending channel in play, signaling the start of a new bullish leg. The 30-minute chart shows a tight symmetrical consolidation, with RSI stabilizing above 50 and MACD crossing into positive territory, indicating that bullish momentum is building. However, Stochastic RSI is nearing overbought territory, suggesting a short-term pullback is possible.
For May 30 and further, GBP/USD is expected to remain range-bound between 1.3450 and 1.3510. A breakout above 1.3510 could push the pair toward 1.3560, while failure to hold above 1.3450 would bring the 1.3400–1.3350 range into focus. Traders should monitor volume and momentum closely for further direction.
As discussed previously, GBP/USD has shown strength in the broader uptrend, bouncing off critical support zones and positioning itself for a breakout. However, the current consolidation within the 1.3450–1.3510 range needs to break for any meaningful upside continuation. Traders should watch for confirmation of a breakout or further support testing as the pair approaches the 1.3510 resistance.
