GBP/USD Weekly Forecast: Pound Sterling Sellers Refuse to Give Up Yet

The Pound Sterling extended its downtrend against the US Dollar, hitting seven-month lows near 1.3000 before buyers stepped in. This weakness was driven by a return of safe-haven flows, which boosted the USD to a five-month high against its peers, fueled by exhaustion following the AI-driven stock rally and concerns over inflated tech valuations. Furthermore, reduced expectations for a December Fed rate cut, following strong US private sector data, supported the USD. Although the GBP/USD staged a comeback due to a pullback in the USD and resurfacing government shutdown concerns, the Bank of England's dovish hold decision provided little support. Looking ahead, the focus shifts to UK employment data and delayed US reports like Nonfarm Payrolls and CPI, contingent on the US government shutdown ending. Technically, GBP/USD faces resistance at 1.3142, with bearish indicators like the RSI below 40 suggesting further downside risk toward 1.3010 and potentially 1.2967.

(Source：BeInCrypto)