Sterling Under Persistent Selling Pressure

Pound Sterling slides further against the US Dollar despite dovish Fed remarks

The Pound Sterling (GBP) extended its losses on Friday, trading near a two‑month low around 1.3280 against the US Dollar (USD). The pair remains under pressure as the Dollar strengthens, supported by safe‑haven demand amid political developments in France and Japan.

At the same time, the Dollar Index (DXY), which measures the value of the Greenback against six major currencies, held near a fresh two‑month high. Market participants remain cautious, however, as expectations grow that the Federal Reserve will cut interest rates again later this year.

Meanwhile, the President of the United States has faced heightened scrutiny over domestic and international challenges, adding to the uncertainty that continues to shape global markets.

In the United Kingdom, concerns about potential tax hikes in the upcoming Autumn Statement have weighed further on the Pound. Bank of England policymaker Catherine Mann reiterated her support for maintaining higher interest rates for longer, citing persistent inflation risks.

From a technical perspective, GBP/USD trades near the 200‑day EMA at 1.3280, with momentum indicators pointing to renewed bearish pressure. Key support lies at 1.3140, while resistance is seen at the psychological 1.3500 level.