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GBP/USD gained 0.3% on Monday, rebounding from a low of 1.3280 to trade above 1.3400, but failed to break through the key 1.3450 resistance. The pair has been consolidating in a tight range following recent volatility, with traders closely watching for a decisive move to confirm the next directional bias. Technical indicators show mixed signals, suggesting a potential breakout could be imminent if the 1.3450 level is breached. This consolidation phase is critical for forex traders as it tests the psychological 1.3400 level and the 1.3450 resistance. A sustained break above 1.3450 could reignite bullish momentum, while a drop below 1.3350 might trigger further declines. Market participants are also monitoring broader economic data and central bank policies for additional clues. For investors, the GBP/USD movement reflects ongoing uncertainty in global markets, particularly in the UK and US. Traders should watch for follow-through volume and key economic releases this week, including UK inflation data and Fed statements, which could influence the pair's trajectory. The 1.3400 level remains a pivotal support/resistance zone to monitor.
