GBP/USD Year-End Showdown: Bulls Fight to Defend Critical Support
31 December 2025
In today’s technical analysis, the last technical analysis of 2025, let’s take a close look at Cable (GBP/USD), where a decisive technical battle is unfolding right at the end of the year. The pair is currently sitting on an absolutely key support zone around 1.344, marked with orange color on the chart. This level is not random—it represents the highs from the middle of December, which have now turned into a critical demand area. At the same time, price is resting on a mid-term rising trendline that connects a sequence of higher lows formed since the second half of November. Together, these two supports form a strong technical confluence.
From a bullish perspective, this is a make-or-break moment for buyers. If the bullish scenario is to survive into the first days of the new year, price must hold above both the horizontal orange support and the rising trendline. A daily close below these two levels would signal that buyers have lost control, opening the door for a deeper bearish move and delivering a sell signal for the opening sessions of 2026. Such a breakdown would suggest that the recent consolidation resolved to the downside and that the bullish structure from November has failed.
On the other hand, if buyers successfully defend this support zone and manage to push price back inside the blue rectangle, the outlook changes materially. A recovery back into that range would invalidate the immediate bearish threat and confirm this move lower as a false breakdown. In that scenario, Cable would generate a proper long-term buy signal, with renewed upside potential heading into the new year. As we close out 2025, all eyes are on this support area—how Cable behaves here will likely define the tone for GBP/USD in the opening days of 2026.