GBP/USD: Sterling Drops 1.5% After Hitting Resistance at Double Top. What’s Next?

Cable found support at the 100-day SMA, but is that the bottom and up only from here? Powell’s big speech looms next.

🛬 Cable Loses Altitude Fast

• The GBPUSD pair has drifted about 1.5% lower since August 14 when the sterling hit a technical sell wall. A textbook double top prevented the UK currency from going above $1.36.
• After climbing to a double top near $1.3595 back then, the cable has since erased about 200 pips, breaking below $1.34 earlier today before finding some support at the 100-day moving average.
• Friday morning, the pair was back near $1.3420 — but the path forward may hinge on the words of a single person.

🎤 Powell Could Set the Tone

• Traders are eyeing $1.3380–$1.3400 as immediate support. A clean break below could open the door toward $1.3300, while resistance now sits at $1.3500. One big event might help inject some volatility into the pair this afternoon.
• All eyes are on Fed Chair Jay Powell, who speaks Friday at the annual Jackson Hole symposium — likely his final one as Fed head before his term ends in May 2026.
• Markets are hunting for clarity on the September rate decision, with Fed funds futures pricing a 73% chance of a cut. But that can change fast, depending on where Powell takes us.

👀 What Traders Are Watching Next

• Powell’s comments could reshape rate-cut bets and set the tone for the dollar’s next move, directly impacting cable’s trajectory.
• Any hint that the Fed might delay easing could fuel another leg higher for the greenback, putting renewed pressure on the pound-dollar in the near term.
• With UK inflation still running hot and the Bank of England in pause mode, the cable remains caught between policy statements, economic data, and central bank positioning — a perfect recipe for more volatility ahead.