GBP/USD Plunges 2.5% in Largest Weekly Drop Since May

The British Pound has had its largest weekly drop since May, falling nearly 2.5% from its August high after breaking below the September opening range.

With this week's Fed and BoE decisions behind us, UK and U.S. PMI data are set to highlight the next round of event risk.

The bears are testing weekly support at the 61.8% retracement of the June rally at 1.3345, with a break or weekly close below needed to fuel the next leg of the decline towards the 78.6% retracement at 1.3255 and critical support remains unchanged at 1.3194.

Key resistance is eyed back at the yearly open at 1.3474, which has been a major pivot zone for Sterling since the start of the year.