Will GBP Drop Further? Bearish Pressure Mounts Near Key LevelThe British Pound (GBP) continues to face downside pressure near the key level of 1.3100 against the US Dollar (USD) during Monday’s London session. The GBP/USD pair remains under strain as the US Dollar holds firm, near a seven-week high, bolstered by strong Nonfarm Payrolls (NFP) data for September, released last Friday. This robust US labor market performance has further supported the dollar's strength.
In our previous analysis, we closed our positions on this pair (view chart below):
GBP/USD Previous Forecast.
Bearish Sentiment: Continuation or Reversal?
Looking ahead, the Commitment of Traders (COT) report indicates that retail traders remain heavily on the bearish side, which adds weight to the possibility of further downside pressure. While there is no immediate position to open, we will be closely monitoring market developments.
Given the fundamental outlook, our attention will turn to a potential long position if the price retraces to our identified Demand area. Until then, we remain cautious, awaiting clearer signals for a possible entry point as the market evolves.
Conclusion
With the US Dollar's recent strength driven by solid economic data, the GBP/USD pair continues to hover near critical levels. While the current sentiment leans bearish, we will keep a close watch on fundamental shifts and technical signals to reassess future trade opportunities.
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