GBP/USD struggles near 1.3400 as safe-haven dollar demand intensifies

GBP/USD is facing sustained pressure around the 1.3400 level as heightened risk aversion drives safe-haven flows into the US dollar. The pound's weakness reflects growing concerns about UK economic prospects and persistent inflation challenges facing the Bank of England. Sterling has struggled to mount any meaningful recovery despite oversold technical conditions, suggesting underlying bearish sentiment remains intact. The dollar's broad-based strength across major pairs is compounding pressure on cable, with traders increasingly favoring the greenback amid global uncertainty. Immediate support lies at 1.3380, with a break below potentially accelerating losses toward 1.3350. Resistance at 1.3450 has capped recent recovery attempts. Market participants are closely monitoring UK economic data releases and any shifts in BOE rhetoric that could influence sterling's trajectory. The bearish bias is expected to persist while risk-off sentiment dominates.