1. Fundamental Analysis
🇺🇸 United States
US Dollar Remains Under Pressure
• The USD faced pressure due to renewed geopolitical noise and policy irregularities, contributing to stronger GBP performance during late January.
Tariff Uncertainty Adds USD Volatility
• Trump’s threat of new tariffs on Canada created additional instability and weakened USD sentiment, indirectly benefiting GBPUSD.
Market Focus on Fed Policy Path
• Markets saw no strong signals of medium term USD strength, as expectations leaned toward the continuation of the global uptrend against USD established in 2025.

🇬🇧 United Kingdom
Sterling Supported by Overall Risk Sentiment
• GBP showed resilience and attracted buyers particularly after pullbacks toward support zones such as 1.3760–1.3750 and 1.3670, showing strong dip buying interest.
No Major UK Data Releases
• The lack of significant UK macroeconomic events meant that GBPUSD was driven primarily by USD weakness and technical flows.

2. Technical Analysis
Trend Structure
• The GBPUSD pair continued a broad medium term uptrend, breaking through key resistance zones such as 1.3680, which opened room for higher targets.
• Elliott Wave structure shows a constructive bullish sequence with ongoing impulsive movement targeting higher zones toward 1.3900 and beyond.

Key Support Levels
• 1.3728 – 1.3750 → Immediate support zone where price frequently rebounded
• 1.3670 – 1.3700 → Stronger structural support; repeated bullish reactions
• 1.3643 – 1.3652 → Critical support; break may lead to 1.3600–1.3580 decline

Key Resistance Levels
• 1.3830 – 1.3850 → First major resistance frequently tested
• 1.3870 – 1.3920 → Extended resistance band; breakout confirms strength
• 1.3900+ → Elliott Wave’s projected continuation target

3. Trading Scenarios
Bullish Scenario (Primary Outlook)
Trigger:
A sustained break above 1.3830–1.3850.
Targets:
• 1.3870
• 1.3920
• 1.4000 (broader uptrend extension)
Rationale:
USD weakness, strong structural supports, and Elliott Wave bullish impulse suggest continuation upward.

Bearish Scenario (Lower Probability)
Trigger:
Price breaking below 1.3650–1.3640.
Targets:
• 1.3600
• 1.3580
Rationale:
Would require a stronger than expected USD rebound or a risk off shock.

4. Market Sentiment
• GBP sentiment: Constructive, supported by technical structure and dip buying behavior
• USD sentiment: Under pressure from tariffs, political noise, and lack of strong macro catalysts
• Overall: Consolidation with bullish bias, but upside moves remain choppy due to repeated resistance at 1.3850–1.3900.