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The pound is desperately holding onto a major support line.

The pound to dollar exchange rate (GBP/USD) has its hands clenched to a major horizontal support bar at 1.3140; it must hold onto it if it is to arrest a recent spell of weakness.

The support bar runs back to May when a selloff at the time was arrested, it then proved its worth again in August as it arrested a month-long decline.

Interestingly, this is the 38.2% Fibonacci retracement level of the big rally that ran from late 2025 into the first quarter of 2025, from 1.21 to 1.3788.

We're in a similar multi-week downcycle, and if support at 1.3140 can hold, then the contours of the next upcycle become visible:

However, if support breaks, Sterling holders need to be prepared for a more serious breakdown th

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