GBP/USD enters the week at a critical inflection point, trading above the former 1.3100 – 1.3200 range after a decisive breakout driven by a more constructive UK fiscal outlook and a softer U.S. dollar backdrop. With markets increasingly pricing a December Fed cut while the Bank of England is expected to lag the easing cycle, interest-rate differentials and shifting growth expectations are starting to tilt in favor of the pound. Against this backdrop, price action has turned clearly supportive, with cable holding above key breakout levels and dips attracting institutional demand. Our GBP/USD long strategy focuses on buying pullbacks within the new higher range, aligning technical structure, macro fundamentals, and sentiment for a high-conviction, A+ grade setup. GBPUSD Trade Setup: Pair Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals, Technicals, Sentiment) Near-term Catalysts (UK time) GBP/USD LONG GBP/USD on dips. Buy 1.3180 – 1.3220 (prior range top / intraday support). 1.3080 (back inside pre-breakout range and below short-term trendline/Ichimoku base). T1 1.3400, T2 1.3500. Fundamentals: Reeves’ Autumn Budget was taken as fiscally credible – gilts rallied hard, yields fell more than USTs, and brokers have turned more constructive on GBP; speculative GBP positioning is only mildly short, so there’s room for shorts to cover. Fed expected to cut in December while BoE is seen moving later (December BoE meeting not until the 18th), preserving a modest GBP rate advantage in the near term. (Reuters) Technicals: Cable has broken above the 1.3115 – 1.3212 range and is holding above 1.3200, with multiple pieces noting a fresh up-trend and resistance only starting around 1.3300 – 1.3400. Buying pullbacks back toward 1.3200 gives you trend-following but not chasing. Sentiment: Budget risk has shifted from “UK blow-up” to “relief”, with EUR/GBP shorts being covered and GBP catching positive flow across the board; this lines up with risk-on equities and softer dollar. Today (27th Nov): UK market digests Budget & OBR EFO; further analyst upgrades/downgrades to UK growth/fiscal path. Tue 2 Dec: UK Nationwide house prices (02:00); EZ CPI & Employment Data (10:00) Chart by TradingView – GBPUSD Trade Setup – 27th Nov Conclusion In summary, GBP/USD currently offers an attractive long-biased opportunity as long as price action holds above the recent breakout zone. A disciplined “buy-the-dip” approach into 1.3180 – 1.3220, with well-defined downside invalidation and upside targets toward 1.3400 – 1.3500, allows traders to express a bullish sterling view while tightly managing risk. As always, this setup should be implemented within an overall portfolio framework, respecting individual risk tolerance, position sizing rules, and the potential for volatility around upcoming UK and U.S. data releases. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar FX Trade Setups please visit our FX Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...
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