GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

💡 DMK Insight

GBP/USD is stuck around 1.3610, but here’s why that might change soon: The recent gains are looking shaky as political instability in the UK could weigh heavily on the Pound. Traders should keep an eye on how the government crisis unfolds, as any negative news could push GBP/USD lower, potentially testing support levels around 1.3550. If the pair breaks below that, we might see a more significant sell-off. On the flip side, if the government manages to stabilize, we could see a bounce back towards 1.3700. It’s also worth noting that the broader market sentiment is cautious, with many investors looking for safe havens. This could lead to increased volatility in GBP/USD, especially if economic indicators from the UK or US come out weaker than expected. Keep an eye on upcoming economic data releases and political news, as they could trigger sharp moves in this pair.