FxWirePro: GBP/USD hits three month low, scope for further downside

• GBP/USD extended its decline to a three-month low as renewed concerns over interest rates, oil prices and persistent inflation pressured the pound..

• Concerns over a drawn-out Middle East conflict mounted, with investors fearing oil prices could stay above $100 a barrel and force higher borrowing costs..

• Energy-importing economies with already strained public finances faced particularly strong pressure.

• On the data front, UK house prices recorded their weakest annual growth since December 2025, highlighting the impact of higher borrowing costs..

• BoE rate-setter Catherine Mann said the central bank’s response to the Middle East war shock had pushed up UK borrowing costs, offering little reassurance to policymakers.

•Traders are ​currently pricing in ​a 85% chance ⁠that the Bank of England will increase borrowing costs at its November meeting,

•   Immediate resistance is located at 1.3305(38.2%fib), any close above will push the pair towards 1.3385(SMA 20)

•  Strong support is seen at 1.3164(23.6%fib) and break below could take the pair towards 1.3138(Lower BB).

  Recommendation: Good to sell  around 1.3200, with stop loss of 1.3270 and target price of 1.3120