GBP\/USD slipped through 1.3160, touching 1.3140, before rebounding to end around 1.3170, a 0.26% fall on the day. Short-term price action is still biased lower, with scope to probe 1.3130 before any bounce, while the deeper support at 1.3110 is seen as out of reach for now. On the topside, resistance is flagged at 1.3185; if 1.3200 gives way, the pair would be viewed as more likely to settle into range trading than press on towards 1.3135.<\/p>\n
Over a 1\u20133 week horizon, the tone remains negative after the stance turned lower a week ago. With spot previously referenced at 1.3205 on 19 Jun, the pair subsequently broke 1.3160 and printed the 1.3140 low, though downside momentum is described as only modestly stronger. A move towards 1.3110 is still on the table provided rebounds stay capped below 1.3245, compared with a prior \u201cstrong resistance\u201d marker at 1.3265.<\/p>\n\n
We see the British Pound continuing its weak spell against the US Dollar, with the recent dip to 1.3140 confirming a negative bias. Our view for the coming weeks is that the pair will likely test lower levels, with 1.3110 being a key target. The immediate downward momentum isn’t aggressive, suggesting a gradual slide rather than a sharp drop.<\/p>\n
For derivative traders, this outlook supports strategies that profit from a falling or range-bound market. Buying put options with a strike price near 1.3150 could be a direct way to position for the expected decline toward 1.3110. Alternatively, initiating short positions in GBP\/USD futures contracts would also align with this bearish view.<\/p>\n\n
This perspective is bolstered by recent economic data showing a divergence between the UK and US economies. Last week’s UK retail sales figures for May fell by 0.5%, missing expectations and pointing to a cooling domestic economy. This contrasts sharply with the latest US Non-Farm Payrolls report, which added a robust 215,000 jobs, reinforcing the Federal Reserve’s hawkish policy stance.<\/p>\n
Historically, a widening interest rate differential between a hawkish Fed and a more cautious Bank of England has often pressured the GBP\/USD pair, a pattern similar to what was observed in late 2022. To manage risk, traders could consider bear put spreads, such as buying a 1.3150 put and selling a 1.3050 put. This strategy limits the initial cost and defines the potential profit zone.<\/p>\n
Our negative outlook remains intact as long as any rallies are capped by the strong resistance level at 1.3245. A decisive break above this price would signal that the downward pressure is easing. This level should be used as a key point for re-evaluating any short-biased positions.<\/p>\n\n\n\n