GBP/USD rose for a third day, trading near 1.3600 in Asian hours on Thursday. On the daily chart, the pair has rebounded from the lower edge of an ascending channel, pointing to a firmer upward trend.
The pair is holding just above the 1.3600 pivot and is trading above the nine-period and 50-period EMAs. This keeps the wider uptrend supported.
Technical Signals And Near Term Resistance
On Wednesday, GBP/USD gained about 0.4%, ending near 1.3595 after testing 1.3645. Price action near recent highs showed several upper wicks and small candles, suggesting weaker follow-through near resistance.
US Non-Farm Payrolls and UK Construction PMI are in focus next. In the UK, April S&P Global Composite PMI and Services PMI came in at 52.6 and 52.7, both above forecasts.
The next UK release is April Construction PMI on Thursday, after 45.6 last month. Friday’s Halifax House Prices data is also due.
We are seeing a familiar setup in GBP/USD, which is currently holding firm near the 1.3850 level. This situation feels very similar to what we observed back in early May 2025 when the pair was consolidating around the 1.3600 mark. The underlying bullish trend appears to be reasserting itself after a period of hesitation.
Options Strategies For A Bullish Bias
The bullish sentiment is now supported by fresh data showing UK inflation remains persistent, with the latest April 2026 CPI reading coming in at 3.1%, still well above the Bank of England’s target. This reinforces expectations that the BoE will delay any potential rate cuts, providing a strong floor for the pound. In contrast, the US jobs report for April 2026 showed a softer-than-expected 175,000 new jobs, slightly dampening the dollar’s appeal.
Given the strong underlying support but potential for resistance, traders should consider buying call options to capitalize on further upward movement. A purchase of call options with a 1.3900 strike price expiring in the next four to six weeks could offer significant upside if the bullish momentum continues. This strategy limits downside risk to the premium paid for the option.
For those who believe the ascent will be more gradual, a bull call spread is a viable alternative. This involves buying a call at a lower strike, perhaps 1.3850, and simultaneously selling a call at a higher strike, like 1.4000. This approach reduces the initial cost of the trade but also caps the potential profit.
Just as we watched the UK Construction PMI and US NFP data closely back in 2025, upcoming inflation figures from both countries will be critical. The market reaction to the softer US jobs data confirms that the pair remains highly sensitive to central bank policy divergence. Derivative positions allow traders to manage the risk associated with these high-impact data releases.
Current implied volatility for one-month GBP/USD options is hovering around a historically moderate 7.2%. This suggests that option premiums are not excessively expensive, making it a favourable environment to establish positions. We expect this volatility to pick up as we approach the next central bank meetings, rewarding those who have positioned themselves beforehand.
