GBP/USD Price Forecast: Can rising bullish pressure break resistance at 1.3400?

Resistance around 1.3400 is under pressure as GBP/USD advances for a second straight day.
Pressure on the BoE to raise interest rates in November has increased following the UK CPI figures.
A move above 1.3400 would bring the former support zone near 1.3480 into view as the next upside objective.

Buyers are testing the 1.3400 resistance zone in GBP/USD on Wednesday, with the British Pound (GBP) extending its advance against the US Dollar (USD) after a rally of nearly 2% from last week’s lows. The move follows some uncertainty early in the European session, when increased public borrowing counterbalanced the support from stronger consumer inflation figures.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Expectations that the Bank of England will finally raise interest rates at its 4 November meeting have firmed following UK Consumer Price Index (CPI) data published earlier in the day. Driven by high energy prices, inflation picked up more than expected in September.

Sterling initially wavered after the release, however. Published alongside the inflation data, the UK’s Public Sector Net Borrowing figures indicated that government debt rose in September at its fastest pace in more than five years, largely because of debt interest. With Chancellor John Healey preparing the budget for release next week, the data may have revived longstanding worries over the UK’s public finances.

Technical Analysis: Can a Break Above 1.3400 Open the Way to 1.3480?

The bullish bias in GBP/USD remains intact at 1.3389, following confirmation earlier this week of a breakout above the horizontal range of the previous two weeks. Momentum indicators point to a strong advance that is becoming increasingly stretched in the near term: the 4-hour Relative Strength Index (14) stands at 69.14, just short of overbought territory, and the Moving Average Convergence Divergence (MACD) histogram is still slightly positive.

If 1.3400 is cleared, the next objective for buyers would be the lows of 13 August and 3 September around 1.3470. That zone also marks the 61.8% Fibonacci retracement of the August-October decline. Beyond it, attention would turn to the 9 September high near 1.3670.

On the downside, initial support lies around 1.3300, where Monday’s and Tuesday’s lows coincide with the upper boundary of the previous two weeks’ channel. A decisive breach would restore sellers’ control, putting the year-to-date lows near 1.3140 back in focus.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

How Has Pound Sterling Performed This Week?

The British Pound (GBP) recorded its strongest performance against the US Dollar this week. Its percentage moves against the major currencies listed are shown in the table below.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.42%	-0.67%	-0.06%	-0.51%	-1.09%	-0.62%	-0.23%
EUR	0.42%		-0.21%	0.37%	-0.05%	-0.58%	-0.17%	0.22%
GBP	0.67%	0.21%		0.59%	0.17%	-0.35%	0.05%	0.50%
JPY	0.06%	-0.37%	-0.59%		-0.43%	-1.01%	-0.55%	-0.04%
CAD	0.51%	0.05%	-0.17%	0.43%		-0.58%	-0.07%	0.33%
AUD	1.09%	0.58%	0.35%	1.01%	0.58%		0.40%	0.82%
NZD	0.62%	0.17%	-0.05%	0.55%	0.07%	-0.40%		0.44%
CHF	0.23%	-0.22%	-0.50%	0.04%	-0.33%	-0.82%	-0.44%

Percentage movements between major currencies are displayed in the heat map. Select the base currency from the left-hand column and the quote currency from the top row. For instance, choosing the British Pound on the left and following its row across to the US Dollar gives the percentage change for GBP (base)/USD (quote) in the corresponding cell.