GBP/USD – Into bearish territory

What next after the breakout?

It hasn’t been a great couple of weeks for GBP/USD . From pushing a break above 1. 40 to breaking below moving averages and threatening to break below recent lows.

The outlook for the pound remains promising but the dollar is on a tear and, like others, the pound is suffering the consequences.

On Thursday, the pair broke below the 200/233-day SMA band, a major breakout that comes following a bearish rotation off a 61.8 fib level.

It’s not looking good for cable, with the next test of support being the July low at 1.3572. While this move is more reflective of the resurgence in the greenback than weakness in the pound, a move below this level would be very bearish, indeed.

The question is whether it will have the momentum to keep up the recent move. Any rebound could see a test of resistance around 1.3726.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.