GBPUSD Holds Below 7-month SupportBritish Pound / U.S. DollarFOREXCOM:GBPUSDFOREXcomGBPUSD Tests a Major Breakdown Zone From a weekly perspective, GBPUSD is attempting to break below a year-long contracting consolidation that has been developing since June 2025. Fundamentally, political uncertainty may imply additional headwinds on the pair, following the resignation of Kier Starmer. To read more on the latest political situation: GBP/USD, EUR/USD Forecast: Two trades to watch Price action is currently trading near the key yearly low and support zone at 1.3160. At the same time, the weekly RSI is testing the lower boundary of its own year-long consolidation pattern, highlighting two potential scenarios. Bearish Scenario – Breakdown Below 1.3160 A daily close below 1.3160 would increase the risk of a deeper decline toward: 1.2990 (50%) 1.2780 (61.8%) These levels align with key Fibonacci retracement levels of the broader advance of 2025 low - 2026 high. The 1.2780–1.2790 region may represent the highest-probability area for a rebound, particularly if weekly momentum indicators enter oversold territory not seen since 2025. Bullish Scenario – Reclaiming 1.33 A close back above 1.33 would shift attention toward: 1.3500 (the midpoint of the consolidation range) 1.3640 (the upper boundary of the consolidation) A breakout above 1.3640 would expose the descending trendline connecting major highs since 2023 near 1.3830 before opening the door toward the psychological 1.40 level. - Razan Hilal