CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Create Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Create Account
✖

British Pound Technical Analysis: GBP/USD 1.3000 Resistance Test

Article By: ,  Sr. Strategist
March 26, 2025 5:13 PM

British Pound Talking Points:

  • GBP/USD put in some effort to break-above the 1.3000 handle, but bulls haven’t yet been able to leave the big figure behind.
  • This morning’s UK CPI helped to extend a pullback and that’s allowed for a fresh weekly low; but as of this writing the 1.2900 support level is putting up a fight.

It’s been a strong year so far for GBP/USD, and that probably catches many by surprise given how weak the pair looked into last year’s close. But that sell-off only drove for a couple of weeks into the New Year and since setting a low on January 13th, bulls have been in charge.

So far for this month GBP/USD is up by a little more than 2.5%, which would be the largest monthly gain for the pair since November of 2023; and the third largest since the open of that year.

More recently it’s the 1.3000 psychological level that’s held bulls back from a stronger breakout and as we wind into the end of the month, that’s helped to push a pullback in the pair.

 

GBP/USD Monthly Chart

Chart prepared by James Stanley; data derived from Tradingview

 

GBP/USD Engaging with 1.3000

 

From the weekly chart we can get a better view of just how aggressively that 1.3000 level has stalled bulls. A doji two weeks ago showed as a lower-high, with buyers unable to get all the way up to the 1.3000 level; but the week after they were able to test above and similarly couldn’t find the drive to continue the bullish trend. Last week’s candle also closed as indecisive, although the wider body makes it look more like a spinning top than a doji.

And, so far this week, that stalling at resistance has followed through with another red weekly candle as the pullback has continued thus far.

 

GBP/USD Weekly Chart

Chart prepared by James Stanley; data derived from Tradingview

 

GBP/USD Shorter-Term

 

Interestingly if we look at the US Dollar as the mirror image of this move, the bounce in USD has been a larger pullback in the 2025 sell-off in DXY than the pullback has been in GBP/USD. As such, this can keep GBP/USD as attractive for USD-weakness scenarios, as the GBP-strength that’s helped the pair to hold up a bit better than the Euro is something that could make another run of USD-weakness show more prominently. But, as of right now, we have to call this what it is as this morning has produced a fresh lower-low and that goes along with the earlier-week stall inside of the 1.3000 level, which could end up as a lower-high.

For today’s daily bar I think that the 1.2900 level is key:  This is the 38.2% Fibonacci retracement of the 2023-2024 major move in the pair, and this is what had helped to set support until this morning’s push to a fresh low. As of this writing it appears as though bulls are responding to that pullback with price attempting to pull back above the 1.2900 level, and if the daily closes like this, it could look attractive as a defense of support.

 

GBP/USD Daily Chart

Chart prepared by James Stanley; data derived from Tradingview

--- written by James Stanley, Senior Strategist

 

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025