GBP/USD Price Forecast: Targeting 1.35968 in the Coming Sessions
Muhammad Faraz 
GBPUSD Price Forecast Targeting 1.35968 in the Coming Sessions
GBP/USD
Current Market Structure and Price Action
The current market structure is corrective within a broader context, with price establishing a clear support base around 1.34945. The price is currently interacting with a strong support confluence between 1.34945 and 1.35058. Recent price action shows a hesitation to move lower, indicating potential buyer accumulation and that a bullish reversal or sustained bounce may be imminent.
Identification of the Key Support Zone
The most critical technical element is the Strong Support Zone around 1.34945 – 1.35058. The strength of this zone is derived from:
- Historical Significance: This level has acted as a major swing low and a consolidation area on multiple previous occasions, as visible on the chart from December 2025 into January 2026.
- Technical Confluence: The zone represents a precise cluster where several recent lows have been established, creating a dense area of buyer interest.
- Market Psychology: This area represents a point where the sentiment of sellers may exhaust, and buyers perceive value, leading to a potential shift in momentum.
This confluence makes it a high-probability level for a bullish reaction.
Technical Target and Rationale
Our analysis identifies the following price target:
Primary Target (PT1): 1.35968
This level represents a key previous resistance and a significant psychological hurdle. A break above the immediate resistance near 1.35500 would likely open a clear path toward this target, which aligns with a prior swing high.
Prediction: We forecast that the price will hold above the key support at 1.34945, rally through intermediate resistance, and move towards PT1 at 1.35968.
Risk Management Considerations
A professional strategy is defined by its risk management.
- Invalidation Level (Stop-Loss): The entire bullish thesis is invalidated if the price achieves a daily close below 1.34428. This level represents a clear break below the recent swing low and the key support structure, negating the immediate upside premise.
- Position Sizing: Any positions taken should be sized so that a loss triggered at the invalidation level represents a small, pre-defined percentage of your total capital (e.g., 1-2%).
Fundamental Backdrop
The technical setup is framed by the current fundamental landscape:
- Central Bank Dynamics: The monetary policy path of the Bank of England versus the Federal Reserve remains the primary driver for GBP/USD volatility.
- Economic Data: Relative economic performance indicators from the UK and US, including GDP, inflation (CPI), and labor market data, will influence directional conviction.
- Risk Sentiment: As a traditionally risk-sensitive currency pair, broader market sentiment impacts flows into or out of the Pound.
These factors contribute to the cautiously bullish sentiment for a technical rebound from current levels.
Conclusion
GBP/USD is at a technical support inflection point. The weight of evidence suggests a bullish resolution from current levels, targeting a move to 1.35968. Traders should monitor for a confirmed bounce and sustained break above 1.35500, while managing risk diligently by respecting the key invalidation level at 1.34428. The reaction at the target zone will be crucial for determining the next major directional move.
Chart Source: TradingView
Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. All trading and investing involves significant risk, including the possible loss of your entire investment. Always conduct your own research (DYOR) and consider seeking advice from an independent financial professional before making any trading decisions.
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