Pound sterling to US dollar rate holds above $1.3263 support amid persistent selling pressure

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Pound Sterling vs Dollar slides 0.82%

Highlights

Federal Reserve Governor Christopher Waller indicated potential for tighter US monetary policy, supporting demand for the US dollar over the Pound Sterling.
Recent US inflation data strengthened expectations of ongoing policy tightening in the US, favoring a stronger dollar and contributing to GBP/USD weakness.
GBP/USD remains in a sustained downtrend, trading below key moving averages and momentum indicators, with the expected range at $1.3263 to $1.3397 over the next two sessions.

Dollar demand strengthens after Fed signals tighter US policy

US Federal Reserve Governor Christopher Waller's hawkish comments on November 10 signaled the potential for tighter US monetary policy, a stance that has reinforced demand for the US dollar and weighed on the Pound Sterling vs Dollar, according to Aol. Alongside this, the latest US inflation data further supported expectations of sustained policy tightening in the US, favoring dollar strength, also reported by Aol. These developments contributed to the recent downward movement in GBP/USD.

Oversold readings persist as strong downside momentum dominates

On the technical front, GBP/USD is trading beneath the MA-20 at $1.3424 and the MA-50 at $1.3403 on the hourly chart, as well as below the long-term MA-200 at $1.3406 on the daily. The Ichimoku Kijun level is at $1.3395, acting as immediate resistance. Momentum indicators remain negative, with both MACD and ADX highlighting strong selling strength. RSI, Stochastic RSI, and CCI are all firmly in oversold territory, indicating possible short-term selling exhaustion, though no reversal is confirmed. Bull/Bear Power is negative at -0.0062, while the Awesome Oscillator supports the ongoing downtrend.

Sideways consolidation likely without break of resistance

In the short term, GBP/USD is projected to remain within a $1.3263–$1.3397 volatility band relative to current levels. The probability of an immediate upward move is considered very low, while a further decline below $1.3263 would likely see the downtrend extend. The baseline scenario suggests sideways consolidation within the stated range, with any upside contingent on a break above immediate resistance at $1.3395.

Anton Kharitonov, expert at Traders Union, sees GBP/USD as staying pressured by both fundamental and technical factors. He believes recent hawkish Fed comments and strong US inflation data continue to boost dollar demand, while the technical picture shows persistent selling momentum with oversold signals, but no clear reversal. Resistance stands at $1.3395 and the downtrend remains unless this level is broken. "Until Pound Sterling reclaims key resistance, I remain defensive and expect continued sideways or lower movement for GBP/USD."

Earlier, analysts noted that GBP/USD faced downside risks amid pressure from broader trend indicators and sensitivity to U.S. monetary policy developments. The latest technical and macroeconomic signals reinforce this bearish outlook, with traders advised to monitor the $1.3263 level as a critical threshold for further weakness in the near term.

Source of Data: GBP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.