The USD is pushing to new highs, and in turn the GBPUSD has broken below a cluster of key technical levels, reinforcing the bearish bias. BOE Governor Bailey added to the downside momentum, noting that the central bank still has room to cut rates.
Technically, the pair has now fallen beneath a confluence of moving averages — the 100- and 200-bar MAs on the 4-hour chart, as well as the 100-day MA at 1.3484. More recently, price extended below the 50% retracement of the decline from the July 1 high at 1.3463 and through a swing area between 1.3445 and 1.3467.
That 1.3463–1.3467 zone now acts as close resistance. As long as the pair holds below, sellers have the green light to press for further downside momentum.
