GBP/USD Bulls Eye Key Resistance at 1.3550

The GBP/USD currency pair has seen a reversal in recent weeks after an initial breakout that failed to continue. The price initially moved lower, but this decline is showing signs of running out of momentum and may be starting to reverse.

This change in the market's perspective is largely due to the reassessment of the US Dollar, which has been impacted by hawkish news and surprises since August 19th. Despite strong jobs data last Friday, the sentiment around the greenback has shifted slightly less hawkish, resulting in a decline in the Dollar's value.

The British Pound is also experiencing a shift, with the Bank of England's Chief Economist arguing for a rate hike in the near term and markets expecting two rate hikes within six months. Additionally, the higher price of Crude Oil is expected to contribute more to British inflation than American inflation.

A technical analysis of the pair shows a descending price channel that was broken last Thursday, with the price making a firm bullish thrust out of this channel. The price action has since pulled back and printed a higher low at 1.3491, indicating a potential shift in the market's direction.