GBP/USD Breaks Below 100 & 200-Day MAs on UK Political Turmoil

GBP/USD has plunged 0.92%, making it the biggest mover in the forex market today, as political uncertainty in the United Kingdom weighs heavily on the British pound. The sharp selloff was triggered by the resignation of Health Secretary Wes Streeting, which has fueled widespread speculation about a potential leadership challenge to Prime Minister Starmer. Adding to the political turbulence, Andy Burnham has emerged as another possible contender after signaling willingness to return to Parliament, following Labour MP Simon's indication he would step aside to facilitate Burnham's candidacy. The pair has broken decisively below both the 100-day and 200-day moving averages, a technically significant development that signals a shift in the medium-term trend structure. These moving averages now act as near-term resistance levels, and sustained trading below them could invite further selling pressure. Traders should monitor developments around the Labour leadership situation closely, as any escalation in political instability could accelerate the pound's decline. A failure to reclaim the 200-day MA may open the door to deeper losses in the sessions ahead.