GBP/USD Hits 14-Week High

The GBP/USD chart shows that the pound climbed above 1.3560 today, reaching its highest level since September 2025.

This upward momentum in the pound may be largely influenced by expectations of a tighter monetary policy from the Bank of England in 2026. Such expectations appear reasonable, given that inflation has consistently stayed above 3% since April 2025.

At the identical time, market participants may be cautious about the potential impact of US actions in Venezuela. This has encouraged a shift of capital into other currencies, contributing to a relative fragileening of the US dollar.

GBP/USD Technical Analysis

In December, GBP/USD established an ascending channel (highlighted in blue), which continues to be relevant as we move through January:

• The sharp rise from point A demonstrates clear purchaviewr dominance.
  
• The pair has now moved into the upper half of the channel, signalling continued bullish momentum.
  

The decline viewn at the end of December, which created a resistance trendline (shown in red), appears to have concluded. Bulls have successfully regained control, resuming the upward trend by finding support at the lower boundary of the channel.

However, attention should be paid to the RSI on the GBP/USD chart: a bearish divergence is evident between peaks B and C, which could indicate a potential sluggishdown in the uptrend. Based on this, the market may be susceptible to a corrective move. Should this scenario unfold, GBP/USD could dip towards 1.3505, a level likely to provide support given the prior strength of purchaviewrs during the breakout above the resistance line and the channel’s median.

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