GBP/USD MFS contagion sink Sterling amid Starmer election crisisGreat Britain Pound vs US DollarTHINKMARKETS:GBPUSDThinkMarketsCable is under pressure late this week, driven by a toxic combination of UK credit contagion fears and political instability. With Labour humiliated in the Gorton and Denton by-election and a list of major banks exposed to the collapse of UK lender MFS, Sterling is facing a growing risk premium that is reflected in the chart. We are tracking a potential double bottom at a critical Fibonacci support zone, but the structure still points to more downside risk. Key topics covered - Political shock: How the Green Party's landmark win in a century-long Labour stronghold—with Reform UK coming second and Labour pushed into third—has added pressure on PM Starmer ahead of the May local elections. - MFS Credit Contagion: Why the collapse of UK mortgage lender Market Financial Solutions (MFS), amid accusations of fraud and double-pledging of collateral, has spooked FX markets. Barclays, Santander and others are among the exposed institutions. - Technical structure: Cable remains locked within a bearish channel below the 50% Fibonacci retracement. The corrective bounce from 1.3432 to 1.3573 looks impulsive in structure, suggesting another leg lower is the path of least resistance. GBP/USD scenarios Bearish: A failure to hold the 1.3450 support triggers the short setup, opening the door to the 100% Fibonacci extension at 1.3348 and the previous low at 1.3336. Entry on a lower high within the channel, stop above channel resistance. Bullish: A confirmed double bottom at the 1.3432–1.3450 zone with a bullish reversal candle offers a long opportunity targeting the 1.3539 (61.8% Fib) and 1.3602 (50% Fib) resistance levels. Stop placed firmly below 1.3400.Are you fading the bounce or buying the double bottom? Share your views in the comments. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.