Post #15232

Pound on the Brink GBP/USD continues to grind lower, trading near seven-month lows around 1.30630 after breaking below its key support zone at 1.3200. Price action remains heavy, with the next major area of interest sitting near 1.2950 The pound’s selloff deepened after U.K. Finance Minister Rachel Reeves warned of “hard choices” ahead of November’s budget — signaling possible tax hikes and tighter fiscal conditions. While gilt yields dipped on the idea of improved fiscal discipline, the broader tone spooked currency traders, who see higher taxes and weaker growth as sterling-negative. Meanwhile, the dollar continues to strengthen, supported by Powell’s cautious tone last week and the Fed’s refusal to commit to a December cut. Fed's Bowman also struck a hawkish tone this morning. If risk appetite stays weak and fiscal fears grow, sellers could extend the downtrend. Conversely, if sentiment steadies or U.S. yields cool, buyers may treat current levels as a short-term discount.