**GBP/USD Price Analysis: Continued Downtrend Deepens Losses (Original article by Economies.com)**
The British pound sterling (GBP) continued to lose ground against the US dollar (USD) in currency markets, with the pair recording further sharp losses as the trading session unfolded. Recent technical activity indicates that sellers have retained dominant control and the GBP/USD pair remains under downside pressure, raising speculation about a further bearish move in the near to medium term.
This analysis delves deeply into the current situation and future prospects for GBP/USD, referencing technical patterns, macroeconomic drivers, and essential support and resistance levels. All technical references and the original analytical framework stem from economies.com.
## Trend Overview: An Extended Bearish Phase
As observed in the most recent trading sessions, GBP/USD has failed to mount any meaningful recovery. The pair’s downtrend has accelerated at the start of November 2025, continuing a pattern of lower highs and lower lows that have defined its performance over the past several weeks.
Several factors have contributed to this persistent weakness in the British pound:
– **Resilient US Dollar**: Safe-haven demand and recent strength in US Treasury yields have supported the greenback, further weighing on GBP/USD.
– **Weakness in UK Economic Data**: Lagging macroeconomic indicators in the United Kingdom, including subpar GDP growth, persistent inflation, and consumer confidence concerns, have discouraged bullish sentiment for GBP.
– **Dovish Bank of England (BoE) Outlook**: Recent commentary from BoE officials indicates a cautious policy stance, with reduced expectations of further rate hikes. By contrast, the Federal Reserve remains relatively hawkish.
## Technical Insights: Chart Patterns and Price Action
The daily chart pattern for GBP/USD continues to paint a decidedly bearish picture. Sellers have dominated the price action since failing to break above key resistance at 1.2300 in late October. Subsequently, the breakdown below 1.2200 – a previously significant support level – triggered an intensified selloff, with the pair targeting new multi-month lows.
Key technical elements to consider include:
### Momentum Indicators
– **Relative Strength Index (RSI)**: The daily RSI metric currently sits firmly in bearish territory, below the crucial 50-point level, suggesting persistent negative momentum and minimal likelihood of a short-term reversal.
– **Moving Averages**: The 50-day and 100-day simple moving averages (SMA) are trending downward and acting as dynamic resistance, reinforcing the negative bias. The pair’s failure to retest these averages on rebounds is another bearish technical sign.
– **Trendlines and Chart Patterns**: The descending trendline from recent highs continues to serve as a cap on any fleeting attempts at upward corrections. Each bounce has met with renewed selling pressure, confirming the dominance of the prevailing trend.
### Support and Resistance Levels
The current price structure delineates key levels for traders to monitor:
– **Immediate Support: 1.2050**: Pressures have now brought the pair close to this important psychological level, with a confluence of previous lows adding technical significance.
– **Deeper Support: 1.2000 and 1.1920**: Should 1.2050 give way, 1.2000 becomes the next likely target for sellers, followed by March 2023 lows near 1.1920.
– **Resistance Levels: 1.2160 and 1.2280**: Any attempts at rebound are likely to encounter heavy selling pressure around 1.2160, where prior congestion occurred, with stronger resistance set at 1.2280.
## Fundamental Factors Driving the Downturn
Understanding GBP/USD’s recent performance also requires examining the underlying fundamentals influencing currency flows.
### Diverging Monetary Policies
– The Federal Reserve’s sustained hawkish messaging – keeping options open for further tightening in the face of sticky US inflation – has underpinned the US dollar.
– In contrast, the Bank of England has sign
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