GBPUSD faces mounting bearish pressure

Cable remains under sustained pressure, extending losses into a second consecutive session with a 1% drop over the past two days.

Sterling continues to struggle amid persistently weak UK business activity, accelerating job cuts, and growing concerns over the government’s fiscal position—all weighing heavily on market sentiment.

The pound saw sharp downside acceleration after multiple failures to clear strong resistance at 1.3576 (daily Kijun-sen and 50% Fibonacci retracement of the 1.3788–1.3364 drop). The decline deepened as price broke below the rising daily Ichimoku cloud (top at 1.3476, bolstered by the daily Tenkan-sen and 50% retracement of the 1.3364–1.3588 recovery), reinforcing the bearish outlook.

Technical signals continue to deteriorate, with moving averages aligned in a bearish setup and momentum strengthening on the downside.

Bears are now targeting key support around 1.3370—the lows from June 23 and July 16 and near the 23.6% Fibonacci retracement of the 1.2099–1.3788 rally. This area also forms the neckline of an emerging asymmetric Head & Shoulders pattern on the daily chart. A decisive break below this zone would confirm the pattern and likely trigger fresh bearish momentum.

Res: 1.3458; 1.3500; 1.3544; 1.3588
Sup: 1.3370; 1.3321; 1.3300; 1.3250