The British pound is facing intensified downward pressure after GBP/USD breached a critical technical support level, according to Societe Generale. Analysts led by Kenneth Broux have identified that the currency pair has broken below its ascending trendline established in April 2025, signaling a potential shift in momentum. The pair is now tracking toward the March 2025 low as selling pressure accelerates.
This technical breakdown comes at a crucial juncture for sterling, suggesting the recent uptrend that began in spring may be exhausted. Traders and currency desks should prepare for continued weakness in the pound against the dollar as the pair seeks lower support levels. The break of this trendline typically indicates further downside potential as technical traders exit long positions and fresh short interest builds.
Market participants with GBP exposure face immediate hedging decisions as the technical picture deteriorates. The move toward March lows could trigger stop-loss orders and accelerate the decline.
FXnCO Insight
Traders should watch the March low as the next critical support level, with a break below potentially triggering additional algorithmic selling and deepening sterling losses.
Source: FXStreet