2026-02-18 03:26:00
Cable is stuck in a holding pattern just above a longer-term ascending trend line.
Which direction could it break out this time?
Take a look at these potential upside and downside targets on the 4-hour time frame.
Weaker than expected U.K. jobs data continued to fuel expectations for further Bank of England (BOE) interest rate cuts, especially since the central bank already delivered a “dovish hold” in their previous statement.
Meanwhile, the U.S. dollar is waiting on the release of the FOMC meeting minutes, followed by the U.S. advanced GDP figure and core PCE price index later in the week.
Is there a chance GBP/USD can resume its climb?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The pair is currently finding support around S2 (1.3520) which lines up neatly with the triangle bottom and trend line that’s been connecting lows since December last year.
Keep your eyes peeled for a strong bounce off this area, as this could take GBP/USD back up to the triangle top or for a break higher towards the pivot point (1.3650) then R1 (1.3710) and R2 (1.3780).
On the other hand, long red candlesticks closing below current levels could mark the start of a longer-term slide, potentially dragging Cable to S3 (1.3460) then S4 (1.3400) which lines up with a major psychological level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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