**The GBP/USD is Under Negative Pressure – Analysis 11-07-2025**
*Original analysis by Economies.com*
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### Introduction:
The British Pound (GBP) has recently come under pronounced selling pressure against the US Dollar (USD), triggering heightened activity in the GBP/USD currency pair. Market participants are closely examining the technical and fundamental indicators, seeking clarity on whether this latest downtrend signals a temporary pullback or the onset of a sustained bearish trajectory. In this analysis, based on insights published by Economies.com, we will dissect the recent performance of GBP/USD, evaluate the primary drivers behind the negative momentum, and outline possible scenarios traders should consider over the coming sessions.
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### Recent Price Action: A Summary
– **Performance Overview:**
The GBP/USD pair suffered noticeable declines during the past trading sessions, falling steadily from its recent highs. Sellers have dominated the landscape, pushing the pair below critical support levels.
– **Key Technical Zones:**
The drop pushed GBP/USD below the 1.2800 psychological level, raising concerns about further depreciation.
– **Price Patterns:**
Recent candlestick formations and volume profiles highlight escalating bearish sentiment, with the pair generating lower highs and lower lows on the daily chart.
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### Fundamental Drivers of Weakness
Several key factors have contributed to the mounting downside pressure on GBP/USD:
#### 1. Divergent Monetary Policies
– **Bank of England (BoE) Outlook:**
– The BoE has adopted a cautious tone in recent statements, reflecting concerns over sluggish GDP growth and persistent, but moderating, inflation.
– Forward guidance suggests that any policy tightening will be gradual, with markets now pricing in a potential hold, or even a dovish tilt, in upcoming meetings.
– **Federal Reserve (Fed) Stance:**
– US economic data, by contrast, remains robust, particularly in the labor and consumer sectors.
– The Fed’s hawkish rhetoric, emphasizing “higher-for-longer” rates, has increased US dollar demand.
#### 2. Economic Data Disparity
– **UK Data:**
– Recent figures underscore vulnerabilities in the UK economy—soft retail sales, stagnant wage growth, and poor business investment.
– Inflation, though still above the BoE’s target, is declining faster than expected.
– **US Data:**
– Stronger-than-expected nonfarm payrolls, resilient retail activity, and better-than-anticipated inflation readings have bolstered greenback strength.
#### 3. Geopolitical and Sentiment Risks
– **Political Uncertainty:**
– UK political risks, including market uncertainty over policy changes and public spending, have added an extra layer of volatility.
– **Global Risk Appetite:**
– Investors are favoring the US dollar as a safe haven amid renewed global trade tensions and elevated geopolitical frictions.
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### Technical Analysis: Critical Levels to Watch
A detailed exploration of the GBP/USD chart reveals several important levels and technical indicators suggested by Economies.com:
#### Support and Resistance Zones
– **Near-Term Support:**
– 1.2750: The first line of defense for bulls, representing a pivotal level tested multiple times during previous corrections.
– 1.2670: A break below this exposes the pair to larger declines and could invite more sellers into the market.
– **Immediate Resistance:**
– 1.2830: Short-term cap, aligning with recent failed rallies. A close above could trigger corrective buying.
– 1.2950: Major resistance; regaining this area is necessary for buyers to retake control.
#### Trend and Momentum Indicators
– **Moving Averages:**
– The 50-day Exponential Moving Average (EMA) has turned downward, reinforcing short-term bearishness.
– The 200-day EMA, at higher levels, is now providing overhead resistance.
– **RSI (Relative Strength Index):**
– The RSI
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