Office FOR National Statistics

GBP/USD traded around 1.3525 on Monday after stronger UK economic figures and firmer US inflation data kept traders cautious. Technical traders are watching 1.3450 as key support and 1.3650 as the next upside target if the pair rebounds from channel support.

GBP/USD traded around a key support zone after climbing to 1.3545, with traders balancing rising energy prices, elevated bond yields and upcoming economic data. Technical traders are watching whether the pair can extend toward 1.3675 or break lower toward 1.3400.

GBP/USD has retreated sharply from this month’s high as traders position for key US macro data and upcoming central bank decisions. Technical signals remain tilted to the downside, with chart watchers focusing on 1.3150 as a potential support target if selling pressure persists.

GBP/USD climbed to 1.3535, its highest level since May 12, as softer US inflation data weighed on the dollar and supported sterling demand. Traders are watching UK political developments, mixed domestic growth figures and upcoming US retail sales and pending home sales data for the next directional cue.