The British pound weakened against the US dollar on Monday, with GBP/USD dropping to 1.3338 during European trading hours and touching a fresh three-week low of 1.3316 intraday. The decline comes as the greenback strengthens across the board on mounting market expectations that the Federal Reserve will implement interest rate hikes this year. The dollar’s rally reflects shifting sentiment around US monetary policy, with traders pricing in a more hawkish Fed stance than previously anticipated. Technical indicators suggest additional downside pressure for the currency pair, with analysts forecasting a potential move toward the 1.3240 level in the near term. The pound’s weakness highlights renewed dollar dominance as rate differential expectations widen between the Fed and Bank of England. Traders should monitor upcoming US economic data releases and Fed commentary closely, as these will likely determine whether the selling pressure intensifies.
FXnCO Insight
Consider shorting GBP/USD with targets near 1.3240, while watching key support at 1.3316 for breakdown confirmation and Fed-related catalysts for momentum continuation.
Source: FXStreet