GBPUSD pauses for consolidation following extended 7-day rally

Cable edged slightly lower on Thursday as bulls paused for consolidation after a strong two-day advance, which formed part of a broader seven-day rally that lifted the pair to a two-month high of 1.3589 on Tuesday and briefly pushed it above the upper boundary of the thickening daily Ichimoku cloud at 1.3561.

Overbought conditions on the daily chart prompted some profit-taking, although downside moves are expected to remain limited. Initial support is seen around the 1.3500 area, which includes the broken 50% retracement of the 1.3869–1.3159 decline as well as Tuesday’s low. Deeper pullbacks are likely to find stronger support near the daily cloud base around 1.3450, offering potential re-entry levels for bulls.

The broader technical outlook remains constructive, supported by improving risk sentiment driven by growing optimism over a potential peace settlement in the Middle East, which has already boosted appetite for risk-sensitive assets such as the pound.

Immediate resistance is located at 1.3600 (psychological level and near the 61.8% Fibonacci retracement), with a sustained break above it opening the door toward further gains above 1.3700.

Res: 1.3561; 1.3589; 1.3600; 1.3662
Sup: 1.3500; 1.3488; 1.3450; 1.3420