GBPUSD extends sharp losses as expectations for a Bank of England rate cut increase

Cable extended its sharp decline on Wednesday, hitting a three-month low as the strong bearish leg that began after rejection at the daily cloud continued for a second straight week.

Fresh selling pressure pushed the pair below the key 200DMA support at 1.3239 and cracked the 1.3200 level, exposing the next pivotal support at 1.3141 (August 1 low / Fibo 38.2% of 1.2999–1.3788 rise).

Today’s break below the previous low of October 14 (1.3248) confirmed another bearish continuation signal, reinforcing the broader downtrend that started from the September 17 peak at 1.3725.

A daily close below the 200DMA would pave the way for a test of the 1.3141 pivot, with a break lower completing a bearish failure swing pattern on the weekly chart and signaling potential for a deeper correction of the January–June uptrend (1.2999–1.3788), targeting the psychological 1.3000 level.

The technical outlook remains bearish, supported by the fully aligned downward daily moving averages and strong negative momentum. Fundamentally, growing expectations for a Bank of England rate cut later this year—contrasting with earlier projections of steady policy—add to the downside pressure.

On the upside, the broken 200DMA now acts as initial resistance, followed by the session high and descending 5DMA at 1.3280–1.3285, both expected to cap corrective moves and protect the stronger barrier at 1.3342 (10DMA).

Res: 1.3239; 1.3280; 1.3300; 1.3342
Sup: 1.3162; 1.3141; 1.3100; 1.3000