GBP/USD Decline May Have Further to Run as US Dollar Gains Strength
The GBP/USD currency pair has been experiencing a decline in recent days, and analysts believe it may have further to run. The US Dollar's steady upward movement is driving this trend, with a technical breakout occurring in the DXY (US Dollar Index). This comes after a long period of consolidation lasting over one year.
The expectation that the Federal Reserve will make two further rate hikes by the end of 2026, at about a 55% probability, is also contributing to the dollar's strength. The US 10-Year Treasury Yield is currently trading above 5.12%, adding to the upward pressure on the dollar.
The price action in GBP/USD has been bearish, with a dominant descending price channel evident on the hourly chart. A breakdown below the low of this study and the invalidation of support levels indicate that the market is in a downtrend.