Sell ​​GBPUSD down to 1.3540

The short-term trajectory for GBPUSD points firmly south. A resurgent American dollar and evaporating risk appetite are joining forces against the pound, so there is a good chance that it will challenge the psychological support at 1.3570. 

What's driving this bearish momentum? A strong disinflationary trend and a broad-based flight into safe havens are currently pushing the pair down. US Treasury charts tell a compelling story: 30-, 10-, and 5-year bonds are all charging higher. This shows that investors are flocking to American assets, naturally boosting the greenback and leaving the pound without much support. 

And it's not just Treasuries—the dollar index (DXY) is firing on all cylinders, extending its bullish run with conviction. On top of that, a robust greenback acts as an anchor, keeping the main currency basket under pressure. For the pair, this is still the most powerful headwind.

At the same time, major stock markets (S&P 500, Nasdaq 100, Euro Stoxx 50, and DAX) are flashing signs of fatigue, with local sell-offs emerging from time to time. Historically, the pound has been somewhat of a risk-taker, moving in lockstep with global equities. When stocks tumble, sterling follows suit, dragged down by the undertow. 

Falling energy prices—both Brent crude and RBOB gasoline—are taking the heat out of near‑term inflation expectations. This gives the Bank of England (BoE) breathing room to dial back its hawkish stance, narrowing the yield advantage the pound once held over the dollar. With such an interest rate cushion deflating, one of sterling's last defenses is crumbling.

So, where does this leave us? All in all, the intermarket mosaic firmly validates the bearish case for sterling. With a muscular dollar, surging US bonds, and waning risk appetite forming a perfect storm for the pound, buying GBPUSD is a dangerous game. Therefore, the most prudent path is to go short when the pair breaks below 1.3540.

The ultimate recommendation is to sell GBPUSD. Place Take Profit at 1.3540. Set Stop Loss at 1.3630.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow you to enter a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.