GBP/USD Breaks Below 1.32 Support as Sterling Weakness Accelerates
GBP/USD has fallen below the crucial 1.3200 support level, trading at 1.3175 after declining 0.6% in today's session. The pound's weakness stems from mounting UK economic concerns, including stubbornly high services inflation at 5.2% limiting Bank of England rate cut prospects while growth remains sluggish. The US Dollar Index strengthened to 99.85, adding pressure on cable as traders favor the greenback's relative safety. Technical indicators show GBP/USD broke below its 50-day moving average at 1.3210, confirming bearish momentum. RSI readings at 38 suggest oversold conditions may provide temporary relief. Key support lies at 1.3150 (November low), while resistance has formed at the broken 1.3200 level. Market participants await Thursday's UK GDP data and Friday's US employment report for directional cues. A sustained break below 1.3150 could accelerate losses toward 1.3100.
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