30 October 2025,06:37
Daily Market Analysis New
30 October 2025, 06:37
Key Takeaways:
*GBPUSD has fallen to 1.3140, weighed by mounting concerns over the UK’s weakening economic outlook.
*Pre-budget uncertainty and the Fed’s cautious stance on further rate cuts have compounded selling pressure, driving the Pound’s bearish momentum.
*Persistent high inflation and stagnant growth are fueling expectations that the Bank of England may cut rates sooner, eroding the Pound’s yield advantage.
Market Summary:
The Pound Sterling has demonstrated notable weakness against its peers, with the GBPUSD pair declining to the 1.3140 mark—a level not seen in three months. This slide underscores the significant downside pressure currently facing the currency.
The primary drivers behind the Sterling’s decline are largely domestic. The UK economy is grappling with a “stagflation” conundrum, characterized by persistently high inflationary pressure alongside stagnant economic growth. Recent soft economic data, pointing to a slowdown in growth and a loosening labour market, have fueled market speculation that the Bank of England may be compelled to lower interest rates sooner than anticipated, thereby eroding the Pound’s yield appeal.
Compounding these concerns is the market’s apprehension ahead of the UK’s Autumn Budget scheduled for November 26. Fears of potential tax hikes and a less expansionary fiscal stance are creating additional headwinds for the currency.
On the external front, the Federal Reserve’s recent communication has further pressured GBPUSD. The Fed signaled a more cautious approach towards future rate cuts, hinting that its recent reduction may be the last in the near term. This stance has bolstered the U.S. dollar, widening the interest rate differential and adding to the Sterling’s bearish momentum. In summary, a combination of domestic economic frailties, pre-budget jitters, and a resurgent U.S. dollar has converged to drive the Pound to multi-month lows.
The GBP/USD pair continued its decline, falling to its lowest level since August and confirming a sustained downtrend characterized by a series of lower highs. The technical outlook remains firmly bearish, with momentum indicators pointing to further weakness ahead.
The Relative Strength Index (RSI) remains subdued below the neutral 50 level and is edging closer to oversold territory, signaling persistent selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator continues to trend lower, reinforcing the view that bearish momentum is strengthening.
Together, these signals suggest that downside risks remain elevated, with the pair likely to face additional selling in the near term unless a significant catalyst emerges to reverse the current trajectory.
Resistance Levels: 1.3290, 1.3420
Support Levels: 1.3165, 1.3000
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