GBP/USD Bears Eye Key Lows as Strong Dollar Continues

The GBP/USD currency pair is facing a bearish trend due to the strong US Dollar and deteriorating risk sentiment. The US Treasury Yields have risen to highs not seen since 2007, with the 10-Year Yield reaching 5.24%. This has led to a bullish picture for the US Dollar, making it challenging for other currencies, including the British Pound.

The Federal Reserve's recent rate hike and indication of further tightening have lifted the Dollar Index to near 101.00, its highest level since July. Global investment capital is flowing into the USA, with President Trump working to maintain this trend.

The pound has some support from UK interest rates, as the Bank of England held its policy rate at 3.75% in September, and August inflation reached 3.1%, above its 2% target. However, weak growth and higher energy costs could squeeze households and businesses.