GBP/USD remains under sustained pressure
The British pound extended its steep decline on Wednesday, falling to its lowest level in nearly two and a half months. The pair has dropped for five consecutive sessions, sliding from the July 24 lower high at 1.3588.
Sterling remains under strong pressure, as a string of stronger-than-expected U.S. economic releases—including robust ADP private employment data and upbeat Q2 GDP—reinforces the view that the U.S. economy is resilient. This strengthens the case for the Federal Reserve to maintain its current monetary policy stance, further boosting the U.S. dollar.
The technical picture has deteriorated sharply on the daily chart. A Head and Shoulders pattern was confirmed with Monday’s break below the neckline, followed by today’s drop beneath the ascending daily Ichimoku cloud base (1.3354) and the 100-day moving average (1.3330).
Daily moving averages are now forming a near-complete bearish alignment, while the 14-day momentum indicator continues to deepen in negative territory, reinforcing bearish momentum.
Sellers are now targeting key Fibonacci support at 1.3248 (50% retracement of the 1.2708–1.3788 rally), although some near-term consolidation is possible due to oversold conditions in the Stochastic oscillator.
Any rebounds are expected to be limited and should present fresh selling opportunities, as overall sentiment toward the pound remains bearish.
Markets are also focused on the conclusion of the Federal Reserve’s policy meeting later today. Given the recent solid U.S. economic data, the Fed is widely expected to hold rates steady, a decision that could further underpin the dollar.
A clear break below 1.3248 would open the door for a deeper decline toward 1.3139/1.3120 (May 12 low / 61.8% Fibonacci retracement), with the psychological 1.3000 level coming into view thereafter.
To maintain bearish momentum, any corrective upticks should ideally be capped within the 1.3365–1.3345 area (former support zone / broken H&S neckline / 38.2% Fib retracement).
Res: 1.3330; 1.3375; 1.3435; 1.3500
Sup: 1.3248; 1.3200; 1.3139; 1.3120
