Chart the Market (26/05/2025)

GBP/USD, H4: 

The British pound extended its bullish run against the U.S. dollar, with GBP/USD hitting 1.35797 on May 26—the highest level since February 2022. The rally follows the completion of an inverse head-and-shoulders formation, confirmed by a decisive breakout above the neckline in mid-May. After a brief consolidation phase, the pair cleared a critical resistance zone between 1.34193 and 1.35354, a range that had repeatedly capped gains earlier in the year. This upward momentum underscores a reinforced bullish bias, with the next key resistance seen at 1.36842—a psychologically significant level that also served as a major top in early 2022.

Momentum indicators paint a mixed picture in the near term. The RSI is approaching the 80 mark, signaling overbought conditions, while the MACD continues to trend higher, suggesting underlying bullish momentum remains intact. However, given the pair’s 2.8% surge over the past six sessions, a short-term pullback may materialize before any further attempt to challenge higher resistance levels.

Resistance Levels: 1.3650, 1.3760

Support Levels: 1.3540, 1.3420

BTC, H4

Bitcoin is currently trading at $105,627.09, reflecting a strong bullish structure that has dominated since early May. The uptrend gained momentum around May 5, 2025, when BTC broke decisively above the psychological $80,000 level. This breakout marked a significant shift in market sentiment and ignited a rally, supported consistently by a rising trendline that has acted as dynamic support, guiding the price action higher over the past few weeks.

The bullish rally propelled BTC to a local peak near $111,745.18, establishing a new multi-month high. However, after testing that level, the price experienced a moderate pullback, suggesting profit-taking or short-term exhaustion among buyers. Since then, Bitcoin has entered a consolidation phase, currently trading within a well-defined range between $102,261.21 and $106,627.09.

Overall, the prevailing trend remains bullish, but the current price action reflects a healthy corrective phase within that broader trend. Traders and investors will be closely monitoring this consolidation for clues on the next directional move, with the rising trendline and consolidation boundaries serving as key technical markers.

Resistance Levels: 111,750.00, 117,190.00

Support Levels: 106,630.00, 102, 260.00