**GBP/USD is Showing More Signs of Weakness: In-depth Analysis (October 23, 2025)**
*Original insights based on reporting by Economies.com*
—
**Overview**
The pound sterling (GBP) has been under mounting pressure against the US dollar (USD), with recent indicators showing persistent weakness in the GBP/USD currency pair. The latest analytical review from Economies.com on October 23, 2025, delves into the technical and fundamental factors fuelling this decline, offering traders and investors an actionable roadmap for the near term.
This comprehensive article expands upon that analysis, exploring in detail the underlying reasons for GBP/USD’s bearish trend, its technical structure, relevant economic drivers, and potential market scenarios. By integrating new and in-depth insights while crediting the original article, we aim to equip readers with a robust understanding of GBP/USD’s near-term outlook.
—
**Latest GBP/USD Performance**
Over the past several trading sessions, the GBP/USD pair has exhibited:
– Persistent downward movement
– Lower highs and lower lows on the daily chart
– Intensifying selling pressure near key support levels
The currency pair had failed to recover above significant resistance thresholds, reinforcing the view that bears remain in control.
—
**Technical Analysis: Signs of Weakness Multiply**
The technical picture for GBP/USD is increasingly bearish, as reflected in both short-term and longer-term charts.
**Key Indicators and Patterns:**
– **Failed Recovery Attempts:** Recent bullish attempts have faltered below critical resistance at 1.2200, reinforcing it as a near-term ceiling.
– **Bearish Trend Line:** A clear trend line, formed by successive lower highs from mid-September onward, continues to guide price action lower, acting as dynamic resistance.
– **Support Levels Watch:** The immediate support zone lies at 1.2085-1.2100. The pair briefly tested this area but failed to stage a convincing bounce, signaling underlying weakness.
– **Moving Averages:** The 50-period and 100-period moving averages on the 4-hour chart are both trending downward, with GBP/USD trading consistently below these averages. This reaffirms bearish momentum.
– **Momentum Oscillators:** The RSI (Relative Strength Index) has remained below the mid-50s for several sessions, suggesting a lack of bullish impetus. The MACD (Moving Average Convergence Divergence) histogram is in negative territory, and the MACD line sits below the signal line, both classic sell signals.
– **Candlestick Patterns:** Recent daily candles feature long upper wicks and bearish bodies, highlighting failed intraday recovery efforts by bulls.
**Technical Outlook Summary:**
– The bearish scenario remains favored as long as GBP/USD trades below 1.2200.
– A break below the key 1.2085 support could open the door for further declines toward 1.2000 and possibly the 1.1935 area, which previously acted as a significant pivot point.
—
**Fundamental Drivers Shaping the Downtrend**
Multiple fundamental factors are compounding GBP weakness and USD resilience, contributing to the current trend.
**Primary Drivers:**
– **Divergent Monetary Policy:** The US Federal Reserve has reiterated its commitment to keeping interest rates higher for longer as inflation remains sticky. By contrast, the Bank of England signaled a more dovish outlook amid soft growth and waning inflation pressures.
– **Economic Growth Discrepancies:** Recent UK economic data has underperformed expectations, with weak retail sales, lackluster GDP growth, and downticks in manufacturing and construction output. Meanwhile, US data continues to surprise to the upside, particularly in employment and consumer spending.
– **Geopolitical Risks:** Global geopolitical tensions have buoyed safe-haven demand for the US dollar, while the UK appears more vulnerable due to its higher exposure to energy prices and trade uncertainties post-Brexit.
– **Brexit Overhang:** Markets remain wary of long-term UK growth prospects given unresolved Brexit
Read more on GBP/USD trading.