GBP/USD slides below 1.34 on hawkish Fed positioning

GBP/USD has declined for three consecutive sessions, testing support at 1.3400 as hawkish Federal Reserve rhetoric strengthens dollar demand. The pair has shed approximately 0.5% this week, pressured by expectations of sustained higher US interest rates following recent Fed commentary. Market positioning reflects growing divergence between Fed and Bank of England policy outlooks, with the Fed maintaining its restrictive stance while UK inflation concerns moderate. Technical analysis shows sellers gaining control, with the pair breaking below the 50-day moving average at 1.3420. Immediate support lies at 1.3380, while resistance has formed at 1.3450. The bearish momentum could accelerate if 1.3380 support fails, potentially targeting 1.3350. Traders await upcoming UK retail sales data and Fed speaker comments for directional cues on the sterling-dollar dynamic.