The British Pound Sterling tumbled more than 1.20% against the US Dollar on Wednesday as fears of increased trade tensions under Trump’s leadership weighed heavily on the currency pair. Cable has experienced its sharpest decline since October 3, with the GBP/USD currently trading at 1.2881, having earlier peaked at 1.3047.
The GBP/USD pair broke below the critical 1.2850 level, touching a daily low of 1.2833, and could challenge the 200-day Simple Moving Average (SMA) at 1.2811. A sustained break below this SMA would confirm a bearish trend, potentially leading to a test of 1.2800, followed by 1.2664 and 1.2600.
Conversely, a bullish scenario would require a move above 1.2900 and the 100-day SMA at 1.2985. The Relative Strength Index (RSI), a momentum indicator, suggests further downside pressure, with its downward trajectory signaling increased selling activity.
