GBP/USD Poised for Biggest Weekly Drop Since May

The British pound has fallen nearly 2.5% from its August high after breaking below its September opening range, prompting a major technical inflection point in the GBP/USD currency pair.

As sterling tests key Fibonacci support at 1.3345, traders are waiting for a reaction to determine whether the decline will extend into a deeper correction or a more significant low is forming.

The recovery of the pound above its yearly open would be needed to strengthen the case that a larger low is in place and a bigger recovery is underway.