Pound Sterling vs Dollar trades down as bearish momentum grows after Treasury unveils stablecoin rules

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Pound Sterling drops 0.58% to $1.3223

Highlights

The U.S. Treasury proposed new oversight rules for stablecoin issuers, mandating federal supervision and anti-money laundering compliance.
UK banking sector raised concerns about the Bank of England's capital rules, warning of possibly excessive capital requirements for banks.
GBP/USD is under persistent seller pressure, trading below key technical averages with next week’s expected range at $1.3150–$1.3320 and low probability of a sustained rebound.

Stablecoin regulation proposals heighten oversight as UK banks question capital rules

On April 1, 2026, the U.S. Department of the Treasury proposed the first regulations implementing the GENIUS Act, introducing standards for payment stablecoin issuers to follow federal oversight and anti-money laundering measures. The proposal enables only approved institutions to issue stablecoins under the supervision of agencies such as the Federal Reserve and the FDIC. In the UK, banking representatives expressed concerns over the Bank of England’s capital requirements framework for banks, noting that it may require excessive capital holdings.

Persistent seller control as multiple technical signals confirm bearish tone

GBP/USD trades well below its 20-day ($1.3305), 50-day ($1.3412), and 200-day ($1.3396) moving averages, reflecting sustained seller dominance across all time frames. The Ichimoku Kijun at $1.3313 marks immediate resistance above the current level. Momentum readings remain bearish, with the MACD and ADX on the daily chart signaling continued downside, while RSI is below 50, indicating mild bearish momentum but not yet oversold; Stoch RSI and CCI are neutral. BBP D1 shows buyers with a slight edge intraday, yet overall conditions point to moderate volatility and persistent selling pressure.

Potential for further losses capped by immediate resistance and subdued momentum

Over the next five trading days, GBP/USD is likely to fluctuate within a typical volatility band of $1.3150–$1.3320. With the probability of a price rise assessed at less than 20%, further downside is favored unless significant reversal signals emerge. A breakout above $1.3313 would be needed to trigger a bullish scenario, while a break below $1.3150 could drive deeper losses in line with prevailing indicators. Sideways consolidation within this corridor remains the baseline expectation as momentum stays subdued.

Viktoras Karapetjanc, expert at Traders Union, sees the GBP/USD pair holding a moderate bearish tone as long as it trades below major moving averages and the Ichimoku Kijun. He notes that new U.S. stablecoin regulation and UK banking concerns add macro uncertainty, yet market reactions remain contained for now. Karapetjanc finds no clear bullish trigger at this stage. The analyst expects GBP/USD to consolidate within $1.3150–$1.3320 unless fresh momentum emerges. "A breakout above $1.3313 would offer a tactical opportunity, but for now, staying constructive requires patience and discipline."

Earlier, analysts noted that GBP/USD was under persistent downside pressure, with technical signals supporting a broadly bearish outlook. The current analysis not only confirms this ongoing seller dominance but also highlights that a break below $1.3150 could accelerate losses, making vigilance around this support level critical for traders in the coming sessions.

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.