As we watch the British pound’s turbulent dance with the U.S. dollar, it feels a bit like tuning into a reality show—except instead of dramatic confrontations and love triangles, we get economic reports and pivotal meetings. After hitting peaks near 1.2700 in 2025, GBP/USD has begun to slide, prompting traders to wonder: will it rebound off those eagerly awaited support zones or drop further into the depths of uncertainty? The market’s attention seems to linger around upcoming pivotal moments, like the Trump-Starmer negotiations, as traders hope for favorable outcomes that could stir up demand. And let’s not forget the looming U.S. PCE inflation report that holds the potential to shift expectations for Federal Reserve rate cuts! So, grab your charts and maybe a snack—let’s delve into this analysis and uncover what the 4-hour chart may reveal about the fate of GBP/USD. LEARN MOREAfter turning lower from its 2025 highs, GBP/USD is fast approaching potential support zones.
Will the pair see enough demand at the levels to extend its current uptrend?
Let’s check out the 4-hour chart for clues:
GBP/USD 4-hour Forex Chart by TradingView
The British pound has shown impressive resilience against the U.S. dollar, even as the Greenback flexed its strength across major currencies. Traders seem to be banking on a positive outcome from the Trump-Starmer meeting, where the U.K. could secure favorable trade terms or dodge the tariffs hitting other US trading partners.
The upcoming US PCE inflation report could add more fuel to a GBP/USD rally if it shows cooling inflation. Softer data might speed up the Fed’s rate cut timeline, potentially broadening dollar weakness.
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