FX.co ★ Jackroay | GBP/USD

GBP/USD Daily Technical Analysis On the daily timeframe, GBP/USD is attempting to recover after forming a Higher Low (HL) near the major support zone around 1.3155. I can see that buyers have stepped back into the market after the recent bearish decline, pushing price toward a key resistance area. However, the overall market structure still remains cautious because price is trading beneath the descending trendline that has controlled the market since the previous Higher High (HH). A confirmed daily close above this trendline would strengthen the bullish outlook, while rejection could signal another bearish leg. Trendline and Market Structure The descending trendline is acting as dynamic resistance and is currently aligning with the highlighted supply zone. I believe this confluence increases the probability of a strong market reaction. The sequence of HH, LH, and HL shows that buyers are trying to regain momentum, but they still need to break the Lower High (LH) to confirm a bullish market shift. Until then, sellers may continue defending this area. Order Block, Fair Value Gap & Liquidity Analysis The marked Order Block with the Weekly Fair Value Gap (FVG) represents the most important resistance on my chart. I will closely monitor this zone because institutions often react around these imbalance areas. The chart also highlights a potential trendline liquidity sweep, meaning price may briefly move above the trendline and resistance to collect liquidity before reversing lower. If bearish confirmation appears after the sweep, I will expect another decline toward the 1.3155 support. Conversely, a strong breakout and daily close above the order block would invalidate the bearish scenario and open the door for further upside. Indicators and Tools Used My analysis is based on market structure (HH, HL, LH), a descending trendline, horizontal support and resistance, Order Block, Weekly Fair Value Gap (FVG), and liquidity sweep concepts. I combine these tools to identify high-probability trading opportunities while waiting for clear price action confirmation before entering any trade.