The pair remains under strong pressure amid the escalation of the crisis in the Middle East, while the effects of the recent change in the country's leadership and yesterday's positive UK economic data have already been fully priced in.

The pair remains under significant pressure amid escalating tensions in the Middle East, while the market has already fully priced in the recent change in the UK's leadership and yesterday's stronger-than-expected economic data. Most likely, the Bank of England, following the Federal Reserve's policy stance, which is unlikely to change in the foreseeable future, will also refrain from raising interest rates. This continues to weigh on the pound's ability to sustain a stronger upward move.

From a technical perspective, the pair is testing the 1.3435 support level.

Technical Outlook and Trading Idea

The price is trading below the middle Bollinger Band, as well as below the 5-period and 14-period Simple Moving Averages (SMAs), whose bearish crossover has generated a sell signal. The Relative Strength Index (RSI) is declining and has crossed below the 50 level. The Stochastic Oscillator has already entered oversold territory.

A confirmed break below the 1.3435 support level would open the way for a deeper decline. A potential entry point for short positions is 1.3424.