Technical Analysis:
GBP/USD broke decisively lower on Monday, collapsing through the crucial 200-day moving average support at 1.2812, ultimately trading as low as 1.2713. The clear penetration below the 200-DMA represents a major bearish technical development, highlighting the degree to which ongoing tariff concerns and fears of slowing UK and global economic growth have shaken investor confidence. Sterling’s pronounced drop from its early April 2025 high of 1.3207 underscores the extent of the bearish momentum currently dominating market sentiment.

Technically, the immediate downside focus now shifts to support at the rising 55-DMA, currently positioned at 1.2703, just below the session’s low. This moving average represents a significant technical floor that, if breached, would likely trigger additional selling pressure, with bearish targets extending to the February 28 low at 1.2560. Momentum indicators such as the sharply declining daily RSI reinforce the view that further downside risk is considerable, particularly given the heightened market volatility surrounding ongoing U.S. tariff developments and investor risk aversion.

On the upside, GBP/USD faces considerable resistance at its former key support—the 200-DMA at 1.2812—which now acts as a formidable technical barrier. Before approaching this critical pivot, interim resistance emerges at the falling 10-hour moving average around 1.2786. Above these levels, a sustained recovery toward Monday's high at 1.2933 would be required to alleviate bearish pressure. However, as long as trade tensions persist and economic uncertainty prevails, technical rebounds are likely to remain shallow, with renewed selling interest expected to cap significant recoveries near these critical resistance thresholds.