GBP/USD Has a Positive Bias for Further Gains

GBPUSD
is trading with a positive bias around the mid-1.3600s (1.3650) at the start of the new trading week on Monday, holding firm near levels last seen on February 11.

Spot price action reflects strong fundamental support for the continuation of the uptrend that has been in place over the past month.

US Macro Front: DXY Weakness, Treasury Buyback Operations & Anticipation of PCE / Jackson Hole Symposium
The US Dollar continues to struggle to stage a meaningful recovery, hovering near three-month lows:

• US Treasury Debt Buyback Intervention: The US Treasury’s move to ramp up long-dated debt buyback operations starting in September continues to weigh on Treasury yields. This mechanically reduces the Greenback’s appeal and provides a boost to GBP/USD.
• Focus on PCE Data Release & Kevin Warsh’s Speech at Jackson Hole: Global fund managers are focusing this week on Wednesday’s release of the US Personal Consumption Expenditures (PCE) Price Index—the Fed’s preferred inflation gauge—as well as the appearance of Fed Chair Kevin Warsh at the Jackson Hole Symposium. These events will provide crucial clues regarding the trajectory of the Fed’s benchmark interest rate for the remainder of 2026.

4-Hour (H4) Chart Technical Analysis
Technically, on the 4-hour (H4) chart, GBP/USD confirms a very solid bullish consolidation pattern above the mid-August supply base:

• Bullish Trend Dominance: The price action structure above 1.3580 confirms buyer (bull) control. As long as the spot price holds above the H4 20-period EMA (1.3580), the path of least resistance remains to the upside.
• Breakout Target 1.3685: A clean break above the daily high of 1.3685 will pave the way for further upside expansion toward the next target in the 1.3720 range.