Sterling Slumps to Biggest Weekly Drop Since May

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

GBP/USD is testing major Fibonacci support at 1.3345, with a break below this zone potentially fueling further decline towards the 78.6% retracement at 1.3255.

The bears are facing critical support at 1.3194, which has been identified as a key level by Michael Boutros, Senior Technical Strategist.

With UK and US PMI data due next week, traders will be watching the incoming growth indicators for clues on whether the current weakness in Sterling has further to run.