GBPUSD Analysis: Pound Potentially Form a Head & Shoulders

Fundamental Analysis of GBPUSDGBPUSD Key Takeaways

• Federal Reserve rate cut expectations: The Federal Reserve remained on hold as expected, keeping interest rates unchanged at 4.25%-4.5%. The resolution statement said that the uncertainty of the outlook was “further aggravated”, and the risks of rising unemployment and rising inflation had increased.
• UK-US trade negotiations: The UK and the US are in intensive consultations on an economic agreement aimed at mitigating the impact of some tariffs, and a delegation of British officials is negotiating the terms of the agreement in Washington this week. All parties are optimistic about reaching an agreement, but it is not yet certain whether an agreement can be reached this week.

Technical Analysis of GBPUSD

GBPUSD Daily Chart Insights

• Stochastic oscillator: The indicator is entangled below the 50 median line and is about to send out a short signal again. Based on the fact that the exchange rate is about to form a head and shoulders top, the short-selling force can focus on the opportunity to go short after it has the upper hand again.
• Head and Shoulders Top: After the exchange rate formed the left shoulder on April 22, it set a new high again and formed a top divergence with the oscillator. In theory, this is a potential signal of the head and shoulders top. The black line is the neckline. If it falls below, the space below will open up.

GBPUSD 2-hour Chart Analysis

• Stochastic oscillator: The indicator sends out a short signal near the 50 median line, suggesting that the exchange rate will go down again and the short-selling force will have the upper hand in the short term.
• Downward channel: GBP/USD fell below the downward channel line, which is theoretically a clear downward driving wave. The first target below the exchange rate is the green 200-period moving average. Pay attention to whether it will continue to fall after falling back to the lower edge of the channel line.

GBPUSD Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3376,
• Bullish Scenario: Bullish sentiment prevails above 1.3376, first target 1.3420, second target 1.3446;
• Bearish Outlook: In a bearish scenario below 1.3376, first target 1.3273, second target 1.3247.

How to Navigate the Forex Market with Ultima Markets

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. Stay tuned for more updates and analyses from our team of experts at Ultima Markets.

—–

Legal Documents

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.

Copyright © 2025 Ultima Markets Ltd. All rights reserved.

Disclaimer

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.