GBP/USD Bears Eye 1.3500 Support as Sterling Slides Toward 9-Day EMA

GBP/USD is testing a key technical zone near 1.3500, where the nine-day EMA is converging with a major psychological support. Analysts say a decisive daily close below this combined level could extend selling and deepen the corrective move after the pair failed to hold above 1.3650. Technically, resistance on any bounce is seen at 1.3580 and then 1.3620. RSI is near neutral, suggesting the move may not be overextended. Traders are also watching confluence around 1.3470 (weekly/50-day area) if 1.3500 breaks. Fundamentally, the pound weakness is linked to diverging central-bank expectations. The Bank of England faces uncertainty as UK inflation eases but remains above 2%, while softer labor and retail data increase the odds of a more dovish BoE. By contrast, the Federal Reserve retains a “higher-for-longer” bias due to resilient activity and persistent core inflation, widening the rate differential in favor of the US dollar. Upcoming catalysts include UK CPI, US Non-Farm Payrolls, and speeches from BoE/Fed. Positioning also matters: COT data points to reduced bullish GBP/USD bets, which can fuel further downside if crowded longs unwind. A risk-off shift would typically favor the US dollar and pressure GBP/USD. For crypto traders, GBP/USD-driven USD strength and risk sentiment changes can affect broader liquidity and cross-asset correlations, especially around major data and central-bank events.