**GBP/USD Settles With Sharp Losses: Technical Analysis and Outlook**
*Based on an article on economies.com by Mahmoud Aziz*
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**Introduction**
The GBP/USD currency pair, commonly known as “Cable,” faced pronounced volatility and steep losses in the session described on October 10, 2025. As economic pressures mount both in the UK and the US, the trading dynamics around GBP/USD continue to captivate traders seeking directional clarity from technical and fundamental cues. The latest analysis by Mahmoud Aziz, published on economies.com, offers highly relevant insights into the shifting momentum expressed through strong bearish activity.
This article draws upon Aziz’s analysis, expands on key technical and fundamental drivers, and adds context to the pair’s near-term prospects while outlining strategic considerations for market participants.
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**Recent Price Behavior**
On October 10, 2025, GBP/USD experienced a forceful downward move, breaking below critical technical levels that had recently acted as supports.
– The pair slipped beneath the 1.2300 handle, a psychologically significant level, intensifying selling pressure.
– Previous attempts to rebound from recent lows failed, confirming bearish control.
– The day’s move marked one of the sharpest intraday losses in recent weeks.
Such price action signals a potential for further downside unless strong support emerges or sentiment shifts in the broader market.
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**Primary Catalysts for the Downward Move**
Several factors contributed to GBP/USD’s sharp decline. These include:
– **Strong US Dollar Demand:**
Dollar strength was fueled by hawkish Federal Reserve comments, higher-than-expected US inflation reads, and safe-haven flows during global risk aversion.
– **UK Economic Weakness:**
UK macroeconomic data disappointed, reflecting sluggish GDP growth and persistent concerns regarding inflation and consumer confidence.
– **Divergent Central Bank Policies:**
The Fed signaled that interest rates could remain elevated for longer, while the Bank of England adopts a more cautious stance amid softening economic indicators.
– **Global Market Uncertainty:**
Renewed concerns about geopolitical risks and energy prices led investors to seek the safety of the greenback.
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**Technical Overview**
Aziz’s technical assessment highlights several crucial chart points and indicators:
1. **Break of Support at 1.2345:**
The breach of support at 1.2345 unleashed accelerated selling, turning the former support into resistance.
2. **Next Support Levels:**
The next layer of support is now eyed at 1.2200, with a deeper move targeting 1.2100 if bearish momentum extends.
3. **Moving Average Convergence Divergence (MACD):**
MACD lines cross to the downside, suggesting further weakening.
4. **Relative Strength Index (RSI):**
RSI heads toward oversold territory but has not yet signaled a concrete reversal.
5. **Bearish Trend Continuity:**
Price remains well below 50- and 100-period moving averages, reinforcing downward momentum.
**Current Trading Range:**
According to the original analysis, the pair is now poised to test 1.2200, having validated the breakdown of 1.2345.
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**Forecast Scenarios**
*Bearish Scenario (Main)*
– Downward momentum is likely to persist.
– A daily close below 1.2200 could exacerbate losses, exposing 1.2100 and potentially 1.2000 thereafter.
– Bearish bias is supported by trend-following indicators and prevailing macroeconomic headwinds.
*Bullish Scenario (Less Probable, Countertrend)*
– Any recovery attempts must first reclaim 1.2345 to neutralize short-term selling.
– A sustained move above this level would bring 1.2450 into focus.
– Further gains would only unfold if positive UK data or a dovish shift from the Federal Reserve surprises markets.
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**Key Levels to Watch**
– **Immediate Resistance:** 1.
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