FX.co ★ Konnect2fx | GBP/USD

GBPUSD continues to show strong bearish pressure after failing to hold above the important resistance area near 1.3458. During the previous sessions, Gbpusd attempted several upward moves, but every rally faced heavy selling pressure from traders protecting higher levels. The pair reacted strongly after touching the 61.8 Fibonacci retracement level of the entire downward movement that started earlier this year, which is often considered a key reversal zone. After reaching this level, Gbpusd quickly lost momentum and sellers regained full control of the market. The rejection from resistance, combined with the downward movement of the volume indicator from the overbought zone, confirmed weakening bullish momentum. GBPUSD then broke below the rising wedge pattern, which increased bearish sentiment further and accelerated the decline toward 1.3312 and 1.3310 levels. According to ATR analysis, GBPUSD has already covered most of its daily average range, but the monthly ATR lower boundary around 1.3288–1.3248 still remains an important downside target. Traders believe GBPUSD may continue moving lower toward this support area before any strong recovery appears. Even if GBPUSD temporarily breaks below the monthly ATR boundary, historical behavior suggests the price often returns back inside the range afterward.

On the daily chart, GBPUSD is now developing inside a broader sideways structure between 1.3620 and 1.3184. GBPUSD spent many weeks trading near the upper boundary of this range before finally turning downward again. The market is now approaching the lower side of the channel, making a test of 1.3184 increasingly likely in the coming sessions. GBPUSD is also trading below all major moving averages and below the Ichimoku Cloud, which clearly reflects strong bearish momentum in the short term. The MA100 remains mostly flat, showing that GBPUSD is still inside a wider consolidation phase on the weekly timeframe, while the MA18 has recently turned downward at a strong angle, signaling growing selling pressure during the day. Fibonacci expansion targets continue to support further downside potential, with 1.3274 acting as the next important bearish objective, while the larger target near 1.3057 remains possible if bearish momentum strengthens further. However, GBPUSD could still experience a temporary bullish correction toward the 1.3520 resistance zone before another major sell-off begins. If GBPUSD reaches that area and forms a bearish reversal pattern, many traders may look for fresh selling opportunities targeting a break below the important 1.3158 support level.