This GBPUSD analysis reviews the currency pair from technical and fundamental aspects. It also features trend examination, price forecasts, support and resistance levels, and trading signals.
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GBPUSD Analysis & Live Chart
GBPUSD Fundamental Analysis
Bloomberg—The British pound climbed to \$1.355, getting close to its highest level in three years. This rise came after encouraging economic data from the UK and the announcement of a major defence strategy.
At the same time, the US dollar lost strength following President Trump’s decision to double tariffs on imported steel and aluminum. China responded strongly, denying U.S. trade accusations.
In terms of economic indicators, the UK’s manufacturing sector performed better than expected in May. Although there was a decline, it was smaller than analysts had forecast. Meanwhile, house prices rose by 3.5% compared to the same time last year. This surge was largely due to buyers rushing to complete purchases before new tax rules took effect.
These positive signals have changed how investors view future interest rate moves. Now, they believe the Bank of England is less likely to cut rates again this year. With fewer rate cuts expected and better-than-expected data, UK assets have become more appealing, even as global economic uncertainty continues.
Another key development was the UK government’s release of a new defence policy. The plan includes a £15 billion investment to strengthen the country’s military power. The strategy focuses on expanding the attack submarine fleet and developing the nuclear warhead program.
This effort is part of the AUKUS agreement with the United States and Australia and is aimed at countering potential threats, particularly from Russia.
In short, stronger economic data, reduced rate cut expectations, and increased defence spending have all supported the pound’s recent gains. Despite ongoing global tensions, the UK economy appears more resilient, making it attractive to investors.
GBPUSD Technical Analysis
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The larger the timeframe, the more accurate the signals tend to be. Integrating this widget into your strategy and considering our fundamental news can help you make well-informed decisions.
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