Downside risks persist for GBPUSD
From a technical perspective, GBPUSD reversed below the upper bound of the ascending channel, with MACD holding below the zero threshold, indicating further downside potential. If GBPUSD sustains its bearish momentum below 1.2850, a further decline towards the 1.2550 support might occur. Conversely, if GBPUSD retraces, the price could retest 1.2850 and 1.3000 upon breaching the 1.2850 resistance.
From a fundamental perspective, anti-immigration riots in the UK, threatening social stability and looming BoE rate cuts, continue to weigh on the pound. In the latest BoE monetary policy meeting, the central bank delivered a 25 bps rate cut as inflation cools, with markets anticipating two more 25 bps rate cuts by December. Meanwhile, external market headwinds and risk aversion following US recession fears and heightened geopolitical tensions in the Middle East could dampen the pound's appeal.
From a fundamental perspective, anti-immigration riots in the UK, threatening social stability and looming BoE rate cuts, continue to weigh on the pound. In the latest BoE monetary policy meeting, the central bank delivered a 25 bps rate cut as inflation cools, with markets anticipating two more 25 bps rate cuts by December. Meanwhile, external market headwinds and risk aversion following US recession fears and heightened geopolitical tensions in the Middle East could dampen the pound's appeal.
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