GBP/USD Heads for Biggest Weekly Drop Since May Amid Weakening Technical Picture

The British Pound has fallen nearly 2.5% from its August high after breaking below the September opening range, putting it on track for its biggest weekly drop since May.

GBP/USD is currently testing major Fibonacci support at 1.3345, with a break below this level needed to fuel further declines towards 1.3255.

A recovery above the yearly open would be needed to strengthen the case that a more significant low is forming, and a breach above key resistance at 1.3474 could signal a larger recovery.

With the major central-bank decisions now behind us, attention shifts towards incoming growth data for clues on whether the current weakness has further to run.