Analysts warn GBP/USD may test 1.3405 and risk breaking below 1.3390 amid weakening momentum.
GBP/USD has reversed lower after failing to hold above 1.3470, shifting short-term momentum to the downside. The pair now faces potential support tests at 1.3405, with a break below 1.3390 increasingly likely if selling pressure persists.
Recent attempts to sustain gains above 1.3470 proved unsustainable, signaling a shift in market sentiment. Prior resistance at this level has now turned into a key downside barrier, with traders eyeing further declines.
No immediate market reaction was specified, but the bearish outlook suggests caution among investors.