The GBP/USD pair is showing signs of weakness after recent attempts to recover. Sellers are regaining control, with the price trading around 1.3450 on the H2 chart.

Technical Outlook

• The pair failed to hold above the 1.3490–1.3518 resistance zone, where sellers stepped back in.

• The downside targets now stand at 1.3365 and 1.3308 support levels.

• If the market breaks below 1.3300, further downside momentum could accelerate.

The overall chart structure shows a lower-high formation, suggesting bearish continuation.

Fundamental Drivers

The British pound remains under pressure from weak economic conditions:

• Sluggish UK growth and softer business activity data weigh on sentiment.

• Inflation has eased, lowering the urgency for the Bank of England to keep a strict policy stance.

On the other hand, the U.S. dollar finds some support:

• Strong U.S. services data shows economic resilience.

• Sticky inflation could keep the Federal Reserve cautious about cutting rates too soon, supporting the USD.

Conclusion

GBP/USD is under pressure both technically and fundamentally. If sellers manage to push the pair below 1.3365, the move could extend toward 1.3300. Traders should watch the 1.3490–1.3518 resistance zone as the key invalidation level for this bearish setup.

By Md Golam Rabbani
Senior Partnership Manager & Forex Trainer