Pound Slumps to New Lows as Sellers Defend Key Resistance Level
The British pound has slipped to new intra-week lows against the US dollar after sellers defended the crucial 1.3660 resistance level for the second consecutive session.
This rejection has shifted the near-term technical bias back to the downside, with the pair now trading below its opening price for the week as the US dollar finds renewed strength from resilient economic data.
The 1.3660 level represents a confluence of technical factors, including the upper boundary of a descending trend channel on the daily chart and the 61.8% Fibonacci retracement level of the last major downward swing.
The US dollar's resilience is underpinned by a shift in market expectations regarding the Federal Reserve's monetary policy path, with recent comments from Fed officials pushing back against the idea of imminent rate cuts.