The British Pound is stabilizing around the key 1.3600 handle during Thursday's European trading session, pulling back slightly after touching its highest mark since May 11. Sellers of the US Dollar have paused as global financial markets process the implications of an expanded bond buyback program announced by the US Department of the Treasury. Market participants are keeping a close watch on upcoming US Jobless Claims data alongside developing headlines from the Middle East for immediate direction. According to market analysis from UOB analysts, while upside momentum in GBP/USD remains present, further advances are likely to encounter formidable resistance near the 1.3655 level.
Detailed GBP/USD Technical Outlook and Key Price Levels
Examining the 24-hour perspective, currency market experts noted that GBP soared to a peak of 1.3630 on Wednesday before easing back to settle at 1.3606, representing a daily gain of 0.55 percent. The rapid upward movement appears stretched, with technical indicators reflecting deeply overbought conditions. Consequently, price action is more likely to consolidate within a defined range between 1.3570 and 1.3630 in the near term rather than mounting an immediate continuation higher.
Looking at the broader 1-to-3-week timeframe, earlier analysis on Monday, August 17, when spot traded at 1.3540, indicated that the bullish bias remained intact but warned of strong resistance at 1.3600. Wednesday's sudden surge saw the currency pair break past 1.3600 to print a high of 1.3630. Although further upside potential exists, negative divergence forming on momentum indicators suggests that any subsequent rally will face stiff resistance around 1.3655. On the downside, only a break below the upgraded strong support level of 1.3535 (previously identified at 1.3510) would invalidate the scope for tests toward 1.3655.
EUR/USD Consolidation and Global Foreign Exchange Dynamics
In parallel currency movements, EUR/USD has entered a bullish consolidation phase just below the 1.1700 threshold during Thursday's European trade. The euro recently hit its highest level since late May before pulling back. Forex bulls are awaiting a decisive breakout above 1.1700 before initiating fresh long positions, particularly as the greenback finds footing following its buyback-induced slump. Economic catalysts such as US Jobless Claims and geopolitical uncertainties involving Iran remain central to forex sentiment.
Gold Market Pullback Driven by Hawkish FOMC Minutes
In commodities, gold prices experienced modest intraday losses through the Asian trading session on Thursday, drifting below the $4,500 mark. Despite the minor pullback, bullion remains near its highest valuation since early June, established earlier in the session. The US Dollar rebounded from three-month lows following the release of hawkish FOMC Minutes, prompting traders to lock in profits on precious metals. Nevertheless, retreating US Treasury yields continue to limit sharper downside losses in gold.
Altcoin Performance and Market Liquidity Conditions
Cryptocurrency markets posted steady gains on Thursday, supported by improved liquidity conditions tied to the US Treasury announcement. Major altcoins including Ripple (XRP), Solana (SOL), and Cardano (ADA) stabilized after Wednesday's bullish rebound. Technical indicators suggest additional upside scope for XRP and SOL, whereas ADA remains exposed to giving up recent gains. Ripple traded around $1.0951 after recording a 10 percent rally on Wednesday.
US Treasury Expands Bond Buyback Program Scale
Departing from its regular schedule on Wednesday at 12:32 GMT, the US Department of the Treasury announced a significant policy adjustment. The Treasury stated it will at least double the size of its liquidity support buyback operations across the 10-year to 20-year and 20-year to 30-year maturity sectors. The maximum operation cap will increase from $2 billion to at least $4 billion per operation. This enhanced buyback facility will take effect from September 9 and remain active through November 4, providing substantial liquidity backing to US debt markets.
