GBP/USD Outlook Bearish as 1.3225 Support Level Holds the Key

GBP/USD remains under sustained selling pressure with the pair testing the critical 1.3225 support level during Monday's session. The bearish outlook persists as the US Dollar Index futures maintain strength, keeping the pound on the defensive. Technical analysis highlights 1.3225 as a pivotal floor — a decisive break below this level could accelerate losses toward 1.3180 and potentially 1.3150. On the upside, immediate resistance sits near 1.3275, with a more significant barrier at 1.3320. The pair's weakness is compounded by broader market dynamics, including elevated oil prices (Brent crude) which tend to weigh on the UK's trade balance as a net energy importer. The DAX's performance also reflects European risk sentiment feeding into cross-asset correlations. Traders should watch for upcoming UK economic data releases and any shifts in Bank of England rate expectations, which could provide catalysts for a directional breakout. Until 1.3225 is convincingly defended, the path of least resistance remains to the downside.