GBP/USD Lost the Trend, but Higher UK Yields Are Not HelpingGBP/USDOANDA:GBPUSDEvelyn_ReedGBP/USD has slipped back below the rising structure that supported most of the August recovery. Price also lost the 1.354–1.356 area and is now struggling to reclaim it. Normally, the backdrop should be more supportive for sterling. UK 10-year gilt yields have climbed above 5.25%, their highest level since 2008. Markets are also still pricing some chance of another Bank of England hike before year-end. Yet the pound is not responding. That is the part worth watching. The rise in UK yields is not simply a stronger-growth story. Higher oil prices, inflation concerns and questions around government borrowing are all contributing. When yields rise because investors demand a larger risk premium, they do not necessarily make the currency more attractive. The dollar has the cleaner story for now. Renewed inflation concerns have pushed U.S. yields higher as well, while the Fed has kept the possibility of another rate hike alive. That has been enough to keep demand for the dollar firm despite similar pressure in the UK bond market. What the chart shows The four-hour structure has weakened. The rising trendline is broken, and the former 1.354–1.356 support area is now being tested from below. As long as price stays beneath that zone, the previous sequence of higher lows is harder to defend. The next larger support sits around 1.342–1.344. Primary scenario A continued rejection below 1.354–1.356 keeps the downside retest credible. A move toward the lower demand area would fit the current structure without necessarily turning the entire higher-time-frame picture bearish. Alternative scenario The downside view loses weight if GBP/USD quickly reclaims the broken zone and starts holding above it again. That would suggest the current breakdown was more about short-term dollar strength than a genuine deterioration in sterling. What would change the view The cautious case weakens above 1.356 with sustained four-hour acceptance. A break below the 1.342–1.344 demand area would make the structural damage considerably more important. What comes next Friday’s U.S. jobs report is the immediate catalyst. A weak number could cool Fed hike expectations and give sterling some breathing room. A stronger print would make the broken GBP/USD structure harder to dismiss. UK yields are moving higher, but sterling is showing that not every rise in yields is bullish for a currency.