**GBP/USD Price Continues to Bleed Losses: In-depth Analysis**
*Adapted from original analysis by Economies.com, November 5, 2025.*
The forex market is witnessing intensified volatility as the British Pound Sterling (GBP) continues on a downward trajectory against the US Dollar (USD), further deepening losses that have persisted over recent sessions. The GBP/USD currency pair has felt the weight of stronger US economic indicators, ongoing geopolitical tensions affecting global risk sentiment, and persistently uncertain monetary policy prospects in the United Kingdom. This comprehensive analysis delves into the factors driving the current slide, examines technical perspectives, and looks ahead to possible scenarios for traders and market participants.
—
### Persistent Downward Pressure on GBP/USD
Recent sessions in the forex market have seen the GBP/USD currency pair continue to bleed losses, trading well below previously established support levels. Market fundamentals, mixed with technical setups, have created an environment where the pound struggles to find solid ground. Several converging elements are contributing to this persistent weakness:
#### 1. US Economic Strength Continues
Despite pockets of uncertainty in global markets, the US economy has recently displayed robustness in areas vital for forex traders:
– **US labor data:** Recent non-farm payroll figures beat consensus expectations, signaling continued resilience in the labor market. This underpins the USD with additional strength.
– **Inflation and consumer spending:** Data releases suggest underlying inflation pressures in the US persist, reinforcing speculation that the Federal Reserve may maintain interest rates at higher levels for longer.
– **Federal Reserve’s position:** Fed members continue to express caution, indicating that while rate hikes may be on pause, rapid cuts are unlikely unless economic data deteriorates dramatically.
#### 2. UK Uncertainty Fuels GBP Weakness
The GBP’s lackluster performance can be attributed to several domestic factors:
– **Bank of England (BoE) indecisiveness:** The BoE has shifted to a more dovish stance in recent meetings, sounding alarms over possible recessionary pressures and hinting at an end to its rate-hiking cycle.
– **Sluggish economic data:** The UK economy faces stagnant growth, mounting public sector debt, and increasingly wary consumer sentiment.
– **Political turbulence:** Prolonged negotiations over trade arrangements post-Brexit, together with periodic political reshuffles, heighten investor caution regarding the British Pound.
#### 3. Global Risk Sentiment and Safe-Haven Flows
– **Geopolitical risks:** Conflicts in Eastern Europe and the Middle East continue to stoke global risk aversion. This benefits the US Dollar as the world’s primary reserve and safe-haven currency, drawing capital away from riskier assets like the GBP.
– **Equity market corrections:** Pullbacks in global equity markets amplify demand for safer assets, further pressuring currency pairs like GBP/USD that favor risk-off flows.
—
### Technical Analysis: Bears Retain Full Control
From a technical standpoint, the GBP/USD’s recent price action underscores bearish dominance with little sign of reversal in the near term.
#### Price Chart Overview
– **Current levels:** GBP/USD is trading below key moving averages, specifically the 50- and 200-day simple moving averages (SMAs), reflecting sustained downward momentum.
– **Support and resistance:** Recent price action has breached major support zones that earlier provided short-term stability. The next notable support sits near 1.2070, a level not seen since Q4 2022, while resistance is entrenched around 1.2200 and 1.2250.
– **Momentum indicators:** The Relative Strength Index (RSI) remains in oversold territory, albeit with a slight uptick in recent hours, suggesting the possibility of a minor corrective bounce. However, momentum overwhelmingly favors continued downside.
– **Volume patterns:** Trading volumes have increased during downward moves, underscoring conviction behind bearish trends and the likelihood of further selling pressure.
#### Technical Patterns
– **Downtrend channel:** GBP/USD is
Read more on GBP/USD trading.