The pair fell below key resistance at 1.3399, shifting near-term bias to sellers as it approaches critical support.
GBP/USD retreated to its 200-hour moving average at 1.3365 after failing to hold above a key resistance zone near 1.3399. That level, defined by the 100-day and 200-day moving averages and the 50% retracement of the May rally, has acted as a major pivot point for the pair.
The 200-hour moving average has served as support since June 29, with buyers defending it during a retest on June 30. A sustained break below this level could target 1.3338 and last week’s low near 1.3323, with further downside risk toward 1.3300.
If buyers hold the 200-hour MA, focus will return to the 1.3399 resistance zone. A break above that confluence would improve the short-term outlook and shift momentum back to bulls.