The Pound Sterling (GBP) is facing pressure against the US Dollar (USD), trading below the 1.2800 level due to a widespread risk-off sentiment in the financial markets. Asian equities experienced a significant decline, triggering circuit breakers to halt trading as losses intensified. This led to a flight to safety, boosting the US Dollar and causing the GBP/USD pair to slide.

Technical Outlook:

The GBP/USD pair has lost momentum and is now trading below the 50-day moving average (DMA), suggesting a deeper pullback could be underway. If the pair falls below the August 2 low of 1.2707, it could test the 100-DMA at 1.2683. A further break below this level could expose the 200-DMA at 1.2645, potentially signaling a bearish reversal.

For a bullish recovery, the GBP/USD needs to reclaim the 50-DMA and the August 2 peak at 1.2840. Further resistance levels are located at the June 12 high of 1.2860 and 1.2900.