GBP/USD: Buyers Defending Demand, Bulls Target 1.3500Great British Pound vs. US DollarFX:GBPUSDMR_GOLD_12GBP/USD is currently reacting to a combination of technical structure, liquidity, and market fundamentals, not just one reason. Fundamentally, GBP/USD is influenced by expectations surrounding Bank of England (BoE) and Federal Reserve (Fed) interest rate policies, along with key economic data such as inflation (CPI), employment (NFP), GDP, PMI, and central bank speeches. Strong UK data or a weaker US Dollar supports GBP, while strong US data or a hawkish Fed strengthens the Dollar and can push GBP/USD lower. Market psychology also plays an important role. Large institutional traders rarely move price in a straight line. They often create short-term pullbacks, stop hunts, and liquidity grabs before continuing in the dominant trend. This explains why price may briefly fall even during an overall bullish market. Technically, price has rallied strongly after forming a higher low, but it is now approaching a major supply resistance zone around 1.3380–1.3400 where sellers previously entered the market. Institutions often take profits and collect liquidity before deciding the next move this is why price is slowing down instead of breaking out immediately.