The pair remains below critical moving averages after a 350-pip selloff, with sellers dominating as US yields rise and risk sentiment weakens.
The GBPUSD pair continues to struggle below major moving average resistance after last week’s 350-pip drop from 1.3652 to near 1.3300. Buyers briefly pushed the pair above the 200-day moving average at 1.34229 and the 100-hour moving average near 1.34154 but failed to sustain momentum, stalling at 1.34488.
Technical resistance is clustered around 1.34336-1.34667, with repeated rejections reinforcing the 100-hour and 200-day moving averages as key barriers. Sellers have maintained control as long as the pair remains below these levels, with broader USD strength supported by rising US Treasury yields, which climbed to 4.683%.
US equities are also under pressure, contributing to a weaker risk tone and bolstering the USD’s appeal. The pair’s inability to break above resistance keeps the short-term bias tilted toward sellers.