The GBP/USD pair remains under pressure, struggling to gain traction and trading within a narrow range near the mid-1.3000s. The British Pound (GBP) continues to underperform due to speculation of accelerated rate cuts by the Bank of England (BoE). Meanwhile, the US Dollar (USD) stays strong near a two-month high, supported by market expectations that the Federal Reserve will hold off on further aggressive rate cuts, adding headwinds for GBP/USD.
From a technical standpoint, GBP/USD closed below the 50-day Simple Moving Average (SMA) for the first time since August, signaling bearish momentum. Daily chart oscillators remain negative, suggesting that further downside is likely. A drop below the 1.3000 psychological level could lead to further declines, with the next support targets at the 100-day SMA near 1.2945, followed by the 1.2900 and 1.2860-1.2820 support zones.
On the upside, resistance is now seen at the 50-day SMA around 1.3100. A break above this level could trigger a recovery, pushing the pair towards 1.3155-1.3160 and potentially higher to the 1.3200 and 1.3265-1.3270 resistance zones. However, the overall outlook remains bearish in the near term.


