## Pound Sterling vs. US Dollar Double Blow: The 1.3150 Level Once Again Under Threat

Progress has been made on the US government funding agreement, and news of this caused the pound to decline. Shortly after the Asian market opened on Monday, GBP/USD fell below the 1.3150 level, breaking the previous three-day rebound trend. The dollar's strength is clear—moderate Democrats in the US Senate agreed to support the continuing resolution, raising market expectations for an early end to the government shutdown, with risk aversion driving the dollar higher.

As a result, the GBP/USD pair has been under continuous pressure, recently approaching a seven-month low around 1.3000. Traders are eagerly awaiting comments from Bank of England (BoE) official Clare Lombardelli on Monday evening, hoping to find clues for a potential rebound in the pound from her statements.

## Global Risk Assets in Trouble, Pound Sterling Faces Further Selling

This week's main market theme is "sell everything." After a global stock rally driven by artificial intelligence, traders are experiencing fatigue—US tech stocks plummeted, dragging down the S&P and Nasdaq into correction territory, prompting investors to reduce risk asset holdings. As a risk-sensitive currency, the pound was among the first to be sold off.

Meanwhile, safe-haven capital is flowing back in large amounts, pushing the US dollar to a five-month high against six major currencies. Gold has also been sold off to fill the gap left by stock losses. Concerns over overvaluation of tech stocks (especially AI concept stocks) are spreading globally, triggering significant adjustments in major indices that are rarely seen over the long term.

## Exchange Rate Calculation and Short-term Trading Insights

Based on 18 GBP to USD, at the current level of 1.3150, the equivalent is approximately $23.67. This level is a key psychological barrier for bulls—once broken, further downside risks emerge, and the bearish momentum for the pound has not yet been fully absorbed.