GBP/USD Price Analysis: Downside resumes towards 1.3425 amid Brexit woes

GBP/USD reverses Friday’s rebound, two-month lows back in sight.
Cautious BOE, USD bounce and Brexit woes weigh on the cable.
Bearish daily RSI points to more weakness on the cards.

Dhwani Mehta FXStreet

GBP/USD is reversing Friday’s swift pullback, as the bears fight back control, looking to retest the critical demand area around 1.3425.

The mixed market sentiment combined with escalating Brexit concerns take the wind out of GBP/USD brief recovery from two-month lows of 1.3424 reached Friday. Brexit News: UK appears set to trigger Article 16

Meanwhile, Bank of England (BOE) Governor Andrew Bailey’s weekend comments also undermine the sentiment around the pound. “I don’t think it’s our job to steer markets day by day and week by week,” Bailey told Bloomberg TV.

Next of relevance for the major remains the speeches by the Fed and BOE central banks’ Chiefs, scheduled later on Monday.

Looking at GBP/USD’s daily chart, the bears are looking to test the rising trendline support at 1.3427 after the recovery faltered near 1.3500.

A daily closing below the support line could fuel a fresh drop towards the 1.3411 September lows. Further south, the 1.3400 round number could be threatened.

The 14-day Relative Strength Index (RSI) is edging lower below the midline, keeping the bearish potential intact.

GBP/USD: Daily chart

On the upside, the recovery needs to find acceptance above 1.3500 to take on the previous support now resistance at 1.3559.

The next significant resistance awaits at the 1.3600 psychological mark, which was a pivotal support a week ago.

GBP/USD: Additional levels to consider

GBP/USD

Overview
Today last price	1.3477
Today Daily Change	-0.0015
Today Daily Change %	-0.11
Today daily open	1.3499

Trends
Daily SMA20	1.3693
Daily SMA50	1.3701
Daily SMA100	1.3761
Daily SMA200	1.3849

Levels
Previous Daily High	1.3509
Previous Daily Low	1.3424
Previous Weekly High	1.3698
Previous Weekly Low	1.3424
Previous Monthly High	1.3834
Previous Monthly Low	1.3434
Daily Fibonacci 38.2%	1.3477
Daily Fibonacci 61.8%	1.3457
Daily Pivot Point S1	1.3446
Daily Pivot Point S2	1.3393
Daily Pivot Point S3	1.3361
Daily Pivot Point R1	1.353
Daily Pivot Point R2	1.3562
Daily Pivot Point R3	1.3615

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD bounces off one-week low amid Iran diplomacy hopes, ahead of UK CPI

The GBP/USD pair edges higher during the Asian session, snapping a four-day losing streak to the 1.3360 area, or a one-week low, touched the previous day. Spot prices, however, lack follow-through buying and trade below the 1.3400 mark, warranting caution before confirming that the recent pullback from an over two-month high has run its course.

EUR/USD holds gains above 1.1400 on hawkish ECB expectations despite US-Iran tensions

The EUR/USD pair trades with mild gains around 1.1405 during the early Asian session on Wednesday. A hawkish tone from the European Central Bank provides some support to the Euro against the US Dollar. Traders await the upcoming ECB interest rate decision on Thursday.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

Bitcoin holds firm as ONDO and GRAM lead rally

The broader cryptocurrency market is witnessing an easing of bearish momentum, with Bitcoin holding above $66,000 on Wednesday. Altcoins including Ondo and Gram, formerly known as Toncoin, are leading gains over the last 24 hours, driven by new features. Bitcoin holds above $66,000 on Wednesday, following a 2% surge the previous day.

UK CPI set to show receding inflation in June as GBP/USD fails at May highs

The UK Office for National Statistics will release the June Consumer Price Index figures on Wednesday at 06:00 GMT, a print that will matter for markets. Consensus expectations point to inflation pressures still above the Bank of England’s target, although losing further momentum.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.