GBP/USD Back on the Defensive as US GDP Looms Large

Key Highlights

• GBP/USD extended losses and traded below 1.3200.
• The bears might remain active near 1.3200 and 1.3250 on the 4-hour chart.
• Gold prices declined sharply to a new multi-week low below $4,000.
• The US GDP could grow by 1.6% in Q1 2026.

GBP/USD Technical Analysis

The British Pound faced rejection near 1.3275 against the US Dollar. GBP/USD reacted to the downside and traded below 1.3200.

Looking at the 4-hour chart, the pair settled below 1.3200, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears even pushed the pair to a new multi-week low below 1.3150.

The greenback seems to be gaining strength ahead of the US GDP data. If the bears remain in action, the pair could dip further below 1.3120.

The first major support could be near 1.3050. The main support might be 1.3000. A downside break and close below 1.3000 might spark bearish moves. In the mentioned case, the bears could aim for a test of 1.2880.

If there is a recovery wave, GBP/USD could face resistance at 1.3200. The next major resistance might be 1.3250. A close above 1.3250 could open the doors for a larger increase. In the stated case, the bulls could aim for a move to 1.3350.

Looking at Gold, the bears remained in action, pushed the price below $4,000, and might continue to pressure the market in the near term.

Upcoming Key Economic Events:

• US Gross Domestic Product for Q1 2026 – Forecast 1.6% versus previous 1.6%.
• US Personal Income for May 2026 (MoM) – Forecast +0.4%, versus 0% previous.
• US Initial Jobless Claims – Forecast 225K, versus 226K previous.
• US Durable Goods Orders for May 2026 – Forecast -4.3% versus +8.0% previous.