The GBPUSD pair continues to exhibit potential for further decline after prices were rejected from a robust resistance level on the 1-hour timeframe. The inability of prices to form a higher high (HH) shattered the previous bullish momentum, causing buyers to quickly lose control. The ensuing selling pressure has pushed prices lower to retest the bullish channel low, indicating a shift in market interest toward sellers. This development signals an early indication that the short-term trend may be shifting to a more bearish structure.
From a technical standpoint, the downward movement is further supported by the Zigzag pattern, which is now establishing a minor bearish structure, signaling a weaker price momentum. The MACD indicator remains in the negative zone, reinforcing the notion that selling momentum is still prevalent. As long as GBPUSD trades below the previously failed resistance area, bearish pressure is expected to persist, with ample potential for further declines during the US session tonight.
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On the 15-minute timeframe, GBPUSD also showcases a consistent dominance of sellers, as prices continue to trade below the bearish trendline. The descending Zigzag pattern confirms the emergence of lower highs and lower lows, emphasizing a stronger weakening structure in the short term. With a series of coherent technical signals, GBPUSD stands a significant chance of continuing its decline and testing a crucial support level around 1.32840 during the US session tonight, especially if there isn’t a significant rebound from buyers.
Technical Reference: sell while below 1.33480
Potential Stop Loss 1: 1.33480
Potential Stop Loss 2: 1.33630
Potential Take Profit 1: 1.32980
Potential Take Profit 2: 1.32840
