**GBP/USD Price Continues to Bleed Losses: Comprehensive Analysis**
*Based on the article by Economies.com, May 11, 2025*
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The GBP/USD currency pair, colloquially known as “cable,” has long been a favored play for Forex traders due to its high liquidity, relatively tight spreads, and market-moving potential. As of the analysis provided by Economies.com on May 11, 2025, the pair has experienced a continued and notable downward slide. This article expands on the key points of the original analysis, delving deeper into the factors fueling the losses, the technical environment, potential scenarios to consider for the near and mid-term, and key levels for traders to monitor.
### Summary: The Persistent Downtrend in GBP/USD
The GBP/USD pair recently broke through significant support levels, intensifying the bearish trend already in play. Diminishing bullish attempts, weakening economic data from the UK, and relative strength in the United States dollar all contribute to the persistent downward momentum, putting robust pressure on the pound sterling.
According to Economies.com, the bias remains firmly bearish, especially in the short term, and the technical indicators continue to support this outlook. The move below important technical markers only adds to the downward momentum, with risk-off sentiment and fundamental disparities between the UK and US economies exacerbating the pair’s losses.
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### Key Drivers Fueling GBP/USD Losses
A constellation of factors has coalesced to drive the GBP/USD pair lower. The selloff has multiple causes:
– **Strengthening US Dollar**:
The Greenback has found widespread support, thanks in part to hawkish remarks from the Federal Reserve, solidifying expectations of a more restrictive monetary policy stance in the near future.
– **Weak UK Macroeconomic Data**:
Recent UK data releases—including growth, retail, and sentiment metrics—have disappointed, undercutting the pound and further skewing the risk-reward ratio toward the downside.
– **Reduced Risk Appetite**:
Continued geopolitical tensions and global market jitters have increased demand for safe-haven assets, favoring the US dollar versus riskier currencies such as sterling.
– **Technical Breakdown**:
GBP/USD has violated key support zones, confirming the dominance of sellers in the current market regime.
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### Technical Analysis: Where Do We Stand?
According to Economies.com and expanded technical readings, the outlook on GBP/USD is overwhelmingly bearish. Several technical points are salient:
– **Current Market Position**:
As of the analysis date, GBP/USD has registered persistent losses, closing below significant short- and medium-term support points.
– **Moving Averages**:
Major moving averages, particularly the 50-period and 200-period, have realigned to indicate a strong trend. The pair trades below these averages, intensifying the downward pressure.
– **Relative Strength Index (RSI)**:
The RSI is in bearish territory, with no immediate indications of reversal or oversold bounce potential. This oscillator suggests momentum is still strongly with the sellers.
– **Support and Resistance Levels**:
Economies.com highlights critical areas of interest:
– Next major support: 1.2200 level, with potential for a move toward 1.2100 and 1.2000 if selling accelerates.
– Resistance levels: Initial resistance at 1.2400, followed by heavier resistance near 1.2520 and 1.2600.
– **Candlestick Patterns**:
Daily and intraday candle formations are biased to the downside, with little evidence of reversal patterns forming as of the analytic window.
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### Fundamental Backdrop: Divergence Widening
#### US Economic Outlook
– **Monetary Policy**:
The Federal Reserve maintains a hawkish tone, firmly committed to curbing inflation. This lends ongoing support to Treasury yields, attracting
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