GBP/USD Faces Growing Downside Risks Below Key 1.3600 Resistance

GBP/USD is showing signs of weakness after failing to hold above the key 1.3600 resistance area and may now be at risk of ending its five-week winning streak. Price action is now forming a potential exhaustion and reversal pattern.

In the short term, the focus is on support level near 1.3450. A confirmed break below this area could signal a deeper pullback within the broader uptrend, exposing further downside toward 1.3340. Technically, GBP/USD is also testing important trendline and moving average support areas, making the current price zone critical for the next directional move.

On the upside, rallies are expected to remain limited below the 1.3600 area unless buyers regain control and break back above this resistance zone. Upcoming UK employment and inflation data next week will also be important for shaping expectations around future Bank of England policy and could play a major role in determining sterling’s next move.

GBP/USD Daily Chart