GBP/USD Aims for 1.3440 as Bullish Momentum Builds, But UK Jobs Data Looms

Technical Overview:

• Support: 1.31382 and 1.27035

• Resistance: 1.34417

• Pattern: Bullish pennant near recent highs

Fundamental Drivers:

• The British Pound remains cautious due to softening UK employment figures and moderating wage growth, which could limit further upside if confirmed in upcoming labor market reports.

• On the flip side, the US Dollar (USD) is under pressure following softer-than-expected US inflation data, increasing expectations of a Fed rate cut later this year.

• Geopolitical sentiment improved slightly as Donald Trump signaled improved US-China trade relations, calling them "excellent." This has helped weaken the USD further due to reduced demand for safe-haven assets.

Outlook:
If GBP/USD breaks above the current consolidation pattern, a test of 1.3440 appears likely. However, any downside surprise in upcoming UK employment data or hawkish tone from the Fed could bring the pair back toward 1.3138 support.