GBP/USD: Bearish Pressure Builds Below Key Moving Averages

GBP/USD is trading at 1.3369, slipping after an intraday high of 1.3384 and a low of 1.3361. The pair has dropped below both its short-term moving averages, with the 15-day moving average at 1.3482 and the 20-day moving average at 1.3481, signalling increasing downside pressure.

Key Technical Observations

• Bearish Cross: The 15-day moving average has slipped under the 20-day moving average, reinforcing bearish momentum.
• Support Test: Price is testing the 1.3350–1.3370 support zone, which has been a recent pivot level.
• RSI at 42.38: Momentum is bearish, edging closer to the oversold region but still leaving room for further downside.
• Lower Highs Formation: Recent price action is carving out lower highs, suggesting that sellers are regaining control.

Macro & Market Context

• Dollar Strength: Renewed demand for the US Dollar amid safe-haven flows and expectations around Fed policy is pressuring GBP.
• UK Economic Outlook: Concerns about softer UK growth and uncertainty around BOE policy add to bearish sentiment.
• Risk Sentiment: Broader market risk-off moves could accelerate sterling weakness if equities remain volatile.

Key Levels to Watch

• Immediate Resistance: 1.3480 (15- and 20-day moving average cluster)
• Next Resistance: 1.3600 (swing high)
• Immediate Support: 1.3350 (current floor)
• Breakdown Support: 1.3200 (psychological & prior bounce zone)

Bias: Bearish Tilt

As long as the pair trades below 1.3480, the bias favours sellers. A breakdown below 1.3350 could extend losses toward 1.3200, while recovery above 1.3480 would be needed to neutralize short-term downside risks.

Patience may be warranted here. Traders should watch whether the pair can hold above 1.3350.

• Short setups: Selling rallies into the 1.3450–1.3480 zone with stops above 1.3500 may offer favourable risk-reward.
• Alternative play: A break below 1.3350 could trigger momentum-driven selling toward 1.3200.