The pound continues to trade with relative stability, and with the USD rebound stalling, GBP/USD is showing signs of building a bullish base above 1.366. The UK economy, while not booming, is holding up better than expected and with the Bank of England maintaining a cautious stance, GBP downside is limited.

If U.S. job data this week (especially NFP) comes in weaker, dollar selling will resume, helping GBP/USD push higher. Additionally, the pound remains undervalued on a trade-weighted basis, and a weaker USD opens the door for a clean technical move back toward 1.38 resistance.

LONG GBPUSD

Jul 03 2025