• GBP/USD slips to more than two-week lows as bearish momentum builds.
• The US Dollar Index climbs back above 97.50 as Powell’s cautious tone supports the Greenback.
• Immediate support is at 1.3400, with the September swing low at 1.3333 next on the radar if broken.

The British Pound (GBP) edges lower against the US Dollar (USD) on Wednesday, snapping a two-day winning streak as renewed strength in the Greenback and dovish remarks from Bank of England (BoE) Governor Andrew Bailey weighed on sentiment.

At the time of writing, GBP/USD is trading near 1.3435, its lowest level in over two weeks, last seen on September 5. The pair is down nearly 0.65% on the day, with downside momentum gathering pace after failing to sustain a recovery above its 21-day Simple Moving Average (SMA).

Meanwhile, the US Dollar Index (DXY), which tracks the value of the Greenback against a basket of six major currencies, rebounds sharply to 97.70 after two days of losses, as Federal Reserve (Fed) Chair Jerome Powell’s cautious tone on future monetary easing helped limit the downside.

On the daily chart, GBP/USD continues its decline after peaking at its highest level since early July on September 17, with bears extending their grip. From a technical perspective, the pair has slipped below both the 21-day and 50-day Simple Moving Averages (SMA), at 1.3521 and 1.3470, respectively.

Immediate support is seen at 1.3400, and a break beneath this level would expose the September swing low at 1.3333. On the upside, bulls need a recovery above the 21-day SMA to ease selling pressure, with the next resistance sitting near 1.3600.

Momentum indicators confirm the downside tilt. The Relative Strength Index (RSI) is hovering at 44, heading lower, and signaling sellers remain in control while still leaving room before oversold conditions kick in.

Meanwhile, the Moving Average Convergence Divergence (MACD) has confirmed a bearish crossover, with the MACD line crossing below the signal line and red histogram bars widening, all indicating growing bearish momentum and scope for deeper losses. Unless buyers push the price back above the 50-day SMA on a daily close, the technical outlook stays in the bears' favor.