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The GBPUSD pair remains under pressure following a sharp political-driven selloff, dropping nearly 350 pips from 1.3652 to 1.3300. Buyers attempted a rebound but failed to sustain momentum above key technical resistance levels, including the 200-day and 100-hour moving averages. Sellers regained control, pushing the pair back toward critical support at 1.3350. The USD is supported by higher US Treasury yields (4.683%) and risk-off flows in equities, with the Nasdaq and S&P 500 both declining. This weak risk tone reinforces the bearish bias for GBPUSD.
The technical outlook highlights defined risk for traders, with sellers maintaining control as long as GBPUSD stays below the 1.34229 (200-day MA) and 1.34154 (100-hour MA) cluster. A breakdown below 1.3350 could accelerate bearish momentum toward 1.3303, while a sustained rebound above 1.34336-1.34667 resistance would signal a shift in control. Broader market conditions, including US yield movements and equity performance, will also influence GBPUSD dynamics.
For traders, the key focus remains on the critical moving average cluster and retracement levels. A failure to reclaim 1.34336-1.34667 would confirm bearish bias, while a breakout above this zone could trigger a short-term rally. MENA investors should monitor US dollar strength and geopolitical risks affecting risk sentiment, as these factors will dictate GBPUSD's near-term trajectory.
