GBPUSD Bullish

Analysis Price: 1.3486 (Updated: 21 February 2026, 22:44 UTC)

Comprehensive analysis for GBPUSD showing a predominantly bullish bias with 72% bullish consensus based on combined analytical factors. Raw trader sentiment shows 54% long, 46% short. Market structure, technical patterns, and key levels examined across multiple timeframes.

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Signal Overview

Bullish High Confidence Low Risk

Market Consensus:

72% Long

28% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bullish bias for GBPUSD (signal strength: 45%). Supporting factors include: Technical patterns identified: Bullish Engulfing (H1); GBP is showing relative strength against USD (diff: 29%). Risk assessment for this trade is low. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

Note: The sentiment chart below shows actual trader positioning data (54% long / 46% short). The overall bullish bias (72%) mentioned in the page header represents our analytical consensus based on combined technical factors beyond raw sentiment.

LONG SHORT

54% 46%

Historical Sentiment (7 Days)

Sentiment Interpretation

Neutral sentiment with a balanced distribution between long and short positions. This suggests indecision in the market, which could precede a significant move once a clear direction emerges.

Support & Resistance Analysis

Resistance Levels

R1: 1.3515 0.22% ↑

Analysis Price: 1.3486

Support Levels

S1: 1.3434 0.38% ↓

Market Regime:

Downtrend

Analyst Bias:

Unknown

Direction Probability:

65%

Price Position Analysis

Price is between support at 1.3434 (0.38% below analysis price) and resistance at 1.3515 (0.22% above), with slightly closer proximity to resistance. Watch for rejection confirmation at resistance or break above.

Chart Pattern Analysis

86%

Bearish Engulfing

Reliability:

86%

Detected: Feb 21, 04:47

61%

Shooting Star

Reliability:

61%

Detected: Feb 21, 07:15

Pattern Analysis Interpretation

Predominantly bearish patterns detected across timeframes, suggesting downward pressure. The most reliable pattern is a bearish Bearish Engulfing on the H1 timeframe with 86% historical reliability. Multiple timeframes showing pattern confirmation increases the reliability of the signal.

High Probability Zones

Resistance Zone

95%

Zone Level:

1.3606

analysis price:

1.3486

Distance:

0.89%

Confluence Factors:

Evening Star 38% Retracement Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

86%

Zone Level:

1.3080

analysis price:

1.3486

Distance:

3.01%

Confluence Factors:

Bullish Engulfing 127% Extension Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is approaching a high probability (95%) resistance zone at 1.3606, currently 0.89% away. Consider preparing a sell strategy as price approaches this level, watching for confirmation signals.

Multiple high probability zones exist for this pair, indicating a well-structured technical environment with clear levels for trading decisions.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

85.0

Volatility Regime:

Low

Volatility Level:

14%

10-Day ATR Trend

Volatility Interpretation (H1)

GBPUSD is exhibiting low volatility (14 percentile) with an expected daily range of just 85.0 pips. This reduced movement typically indicates consolidation or indecision in the market. Consider tighter stop losses but be aware that breakout potential increases after periods of low volatility.

Correlation Analysis

Top Correlations with GBPUSD

AUDUSD

0.88

GBPNZD

0.86

GBPCHF

0.81

NZDUSD

0.79

USDJPY

-0.78

Correlation Interpretation

Understanding how GBPUSD correlates with other pairs can help with portfolio diversification and risk management. Strong positive correlations (above 0.7) indicate pairs that move similarly, while strong negative correlations (below -0.7) show pairs that typically move in opposite directions.

GBPUSD shows strong positive correlation with: AUDUSD, GBPNZD, GBPCHF, NZDUSD. This means these pairs tend to move in the same direction. Trading in the same direction on multiple correlated pairs increases portfolio risk, while finding divergences between correlated pairs can highlight potential reversal opportunities.

GBPUSD shows strong negative correlation with: USDJPY. This means these pairs tend to move in opposite directions. Negatively correlated pairs can be useful for hedging strategies or to confirm signals (a buy signal in one pair would be supported by a sell signal in the negatively correlated pair).

Currency Strength Analysis

Select Timeframe:

GBP

0.40

Strong

USD

0.89

Very-strong

Relative Strength:

-0.49

Bearish Bias

Currency Strength Interpretation (M15)

USD is moderately stronger than GBP on the M15 timeframe, with a relative strength of -0.49. This suggests a mild bearish bias for GBPUSD. Monitor for additional confirmation signals before entering a short position.

How to Use This Analysis

This comprehensive analysis provides multiple perspectives on GBPUSD to help inform your trading decisions:

Sentiment Analysis: Use to understand market positioning and potential contrarian opportunities
Support & Resistance: Identify key price levels for setting stop losses and take profits
Pattern Analysis: Recognize technical formations that may indicate continuation or reversal
Volatility Analysis: Adjust position sizing and risk management based on current market conditions
Currency Strength: Compare the relative performance of individual currencies within the pair
Correlation Analysis: Understand how this pair moves in relation to others for portfolio diversification

For optimal results, consider how these different factors align. The strongest trading opportunities typically occur when multiple analytical tools show confirmation across different timeframes.