GBP/USD Selloff Breaks June Uptrend as Sterling Struggles to Recover
The British Pound has been experiencing a decline in recent weeks, with GBP/USD plummeting over 2.5% from its August high and breaking the June uptrend.
Sterling has struggled to maintain its momentum after last month's rally failed to push through major resistance, leading to a subsequent decline that has weakened the near-term technical backdrop.
The latest selloff has driven Sterling below the 200-day moving average for the first time since July, with daily momentum showing possible divergence on this drop and highlighting the threat of near-term exhaustion.
A break below the May swing low at 1.3302 would strengthen the case for another leg lower, while a recovery through near-term resistance at 1.3400/08 or key resistance at 1.3465/74 would begin to ease immediate downside pressure.