The GBP/USD pair has fallen below the 1.3000 level, signaling renewed bearish momentum as it now tests the critical 100-day moving average (DMA). This marks a significant move for the British pound, which has been under pressure due to a mix of weaker-than-expected UK economic data and ongoing strength in the U.S. dollar.
The slide beneath 1.3000 has raised concerns among traders as it suggests that further declines could be on the horizon, especially if the pair fails to hold above the 100-DMA, which is seen as a crucial technical support. A breach of this level could accelerate the sell-off, potentially pushing the pound toward its next key support levels around 1.2900.
The U.S. dollar continues to benefit from robust economic data and the Federal Reserve’s hawkish stance, making it difficult for the pound to recover. Meanwhile, the UK economy has shown signs of slowing, with recent data releases highlighting weakness in consumer spending and industrial output, adding to the downward pressure on the pound.
Looking ahead, investors are focusing on upcoming central bank decisions and key economic reports that could influence the next move in GBP/USD. A recovery above 1.3000 would be needed to reverse the current bearish sentiment, but for now, the pair remains vulnerable to further downside.
