The GBPUSD currency pair has been mired in a persistent downtrend, marked by its position below a descending trend line on the 4-hour chart. The pair continues to grapple with bearish pressures that originated from the high of 1.2679.
Given the current technical outlook, it is reasonable to anticipate the continuation of the downward movement as long as the price remains below the trend line resistance. Traders should prepare for further downside potential, with the next target area located around 1.2280. This level represents a significant support zone that may attract buying interest and potentially pause the bearish momentum temporarily.
To alter the bearish trajectory of GBPUSD, a breakout above the trend line resistance is required. Such a move would indicate a shift in market sentiment and could lead to a retest of the key resistance level at 1.2483. Breaking above this resistance level would serve as a crucial signal for another potential upside move towards 1.2700.
However, it is important to exercise caution and await a clear confirmation of a trend reversal before considering any bullish scenarios. Traders should closely monitor the price action, keeping an eye out for a decisive breakout above the trend line resistance to validate the possibility of an upward movement.
In conclusion, the GBPUSD pair remains entrenched in a downtrend from 1.2679, with price action positioned below a descending trend line on the 4-hour chart. Traders should anticipate further downside movement, with the next target zone around 1.2280 and potential support at 1.2200. A breakout above the trend line resistance would warrant a reassessment of the outlook, potentially leading to a retest of the key resistance at 1.2483 and further upside potential towards 1.2700. It is important to stay vigilant, closely monitor market developments, and employ effective risk management strategies when trading the GBPUSD pair during this period.
