GBP/USD breaks below 1.2417 to hit fresh June low on dollar strength

GBP/USD plunged overnight to 1.2417, marking its lowest level since early June and extending losses by 0.8% (95 pips). The sharp decline was primarily driven by broad-based dollar strength ahead of the Federal Reserve meeting, combined with concerns over UK economic momentum. Sterling weakness accelerated after breaking below the key 1.2450 support level, triggering stop-loss orders. The pair has now fallen over 250 pips from its June high of 1.2670, reflecting shifting market dynamics favoring the greenback. Technical indicators suggest oversold conditions, but momentum remains bearish with the RSI at 32. Immediate support lies at 1.2400, while resistance has formed at the broken 1.2450 level. Traders await UK inflation data and Fed policy guidance for directional clarity.