GBP/USD tests six months lows as Pound Sterling continues to sink

• GBP/USD fell again on Thursday, down over 2% in October.
• Cable has declined nine of the last ten trading days.
• Economic data remains limited heading into the end of the trading week.

GBP/USD fell again on Thursday, grinding down toward the 1.3100 handle and tipping into six month lows at 1.3116. The Pound Sterling (GBP) continues to shed weight against the US Dollar (USD), and is down over 2% against the Greenback through the month of October alone.

Cable has declined for all but one of the last ten straight trading days, plummeting from a half-hearted swing high into 1.3450 and is now knocking on the 1.3100 handle. GBP/USD has fallen below the 200-day Exponential Moving Average (EMA) near 1.3275, setting up Pound sellers for a continued backslide.

The Federal Reserve (Fed) cut interest rates this week, as many had expected. What caught markets off guard this week was a cautious pivot from Fed Chair Jerome Powell, who warned that a lack of official data sources during the US government's federal shutdown has made it nearly impossible for the Fed to analyze inflation and labor data, its two most important datasets.

Powell's pseudo-hawkish (or rather, anti-dovish) shift rugpulled investors who were widely anticipating a third straight interest rate cut in December. Market bets have shifted back a month to January, and the potential for a delay in a third rate trim has bolstered the US Dollar, breathing fresh life into the lungs of a Cable bear run that has been chugging along since the middle of October.

GBP/USD daily chart