GBP\/USD edged lower on Thursday after a seven-day rally, including a strong rise over the past two days. The pair reached a two-month high of 1.3589 on Tuesday and moved above the daily Ichimoku cloud top at 1.3561.<\/p>\n
Overbought daily indicators supported partial profit-taking. Pullbacks are expected to be limited, with support near the 1.3500 area.<\/p>\n
The 1.3500 zone includes a broken 50% retracement of the 1.3869 to 1.3159 decline and Tuesday\u2019s low. If the drop extends, the next area is above the daily cloud base at 1.3450.<\/p>\n
We recall that consolidation we saw in early 2025 when the pound pulled back to the 1.3500 zone after a strong rally. That pause proved to be a healthy breather before the next leg up, establishing a strong support base for the market. A similar pattern appears to be forming now, suggesting that any short-term weakness should be viewed as an opportunity.<\/p>\n
The fundamental picture supports this view, with the latest UK inflation data for March 2026 coming in at 2.8%, slightly above consensus forecasts and keeping pressure on the Bank of England. In contrast, recent US retail sales figures showed a surprise slowdown, suggesting the Federal Reserve may have more room to pause its own tightening cycle. This economic divergence continues to provide a tailwind for Cable.<\/p>\n
Given this, we see merit in selling out-of-the-money puts for the May expiration, specifically around the 1.3600 strike price. This strategy allows us to collect premium while expressing a view that the pound will not break below this key psychological and technical support level in the coming weeks. The current implied volatility of 8.5% for one-month options makes this a particularly attractive way to gain bullish exposure.<\/p>\n
For those wanting to position for a move higher, bull call spreads offer a defined-risk approach. Buying the May 1.3800 call and selling the 1.3950 call, for example, targets the next significant resistance area seen in late 2025. This structure is cheaper than buying an outright call and benefits from the expectation of a steady, grinding move higher rather than an explosive breakout.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBP\/USD paused after seven-day rally; overbought signals prompt profit-taking, with support near 1.3500 and 1.3450.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-44925","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/44925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=44925"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/44925\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=44925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=44925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=44925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}