The currency pair remains near 1.3200 amid a weak USD but is capped by UK political uncertainty and bearish technical signals.
The GBP/USD pair trades marginally above 1.3200 in early European trading, extending its modest gains for a second day. A depressed US Dollar, retreating from its May 2025 highs, provides support, though UK political risks limit bullish momentum for the British Pound.
The pair broke below the 1.3300 level this week, a key threshold, following repeated failures near the 200-period Simple Moving Average on the 4-hour chart. The Relative Strength Index at 47 indicates consolidation, while the MACD shows tentative bullish signals that have yet to challenge the dominant two-month downtrend.
Resistance is seen at the 200-period SMA near 1.3384, with a sustained break above this level needed to shift the broader bearish outlook. Support remains at Wednesday’s low of 1.3140.