GBP/USD Heads for Biggest Weekly Drop Since May Amid Ongoing Decline

The British Pound has fallen nearly 2.5% from its August high after breaking below its September opening range, testing major Fibonacci support.

Sterling is currently poised to mark the largest weekly decline since May when price turned from the same level.

A break / weekly close below the current support zone at 1.3345 would be needed to fuel the next leg of the decline towards the 78.6% retracement at 1.3255, while a breach above the yearly open at 1.3474 would suggest a more significant low is forming.

The bears are testing weekly support today at the 61.8% retracement of the June rally at 1.3345, with initial resistance seen at the 52-week moving average, currently around 1.3410.