The British pound has come under renewed selling pressure against the US dollar after failing to clear a key resistance zone between 1.3660 and 1.3670, with technical signals and central bank divergence driving the pair to fresh intra-week lows.
According to technical analysis, GBP/USD reversed from the multi-month resistance level 1.3670—a level that has capped price since mid-February—and the upper daily Bollinger Band. The rejection halted the previous minor impulse wave iii within the intermediate impulse wave (3) from late June. With daily Stochastic readings overbought and the US dollar broadly bid, analysts expect a decline toward the next support at 1.3560, the former top of wave 1 from July.
The second source similarly noted that the 1.3660 ceiling triggered a fresh wave of selling, dragging GBP/USD to fresh intra-week lows. Market participants remain cautious amid diverging monetary policy expectations: the Bank of England has signaled a cautious approach to rate hikes, while the Federal Reserve’s hawkish stance underpins the dollar. Upcoming UK inflation, employment and GDP figures, along with US PMI and jobs data, could provide direction.
For cryptocurrency markets, renewed dollar strength can act as a headwind for risk assets, potentially weighing on digital asset prices in the short term. Traders are watching whether GBP/USD holds above current support or extends losses, as broader FX trends may influence crypto risk sentiment.
