The GBPUSD pair has made a significant move, breaking below the crucial 1.3312 support level and extending its downward trajectory to reach a low of 1.3237. This development suggests that the upward move from 1.3001 may have already peaked at 1.3434, signaling a potential shift in market sentiment.
With this bearish breakout, traders are now eyeing the possibility of further declines in the coming days. The next target for the bears appears to be the 1.3170 area, which could provide some support if reached.
However, it’s important to note that markets rarely move in a straight line. Traders should be aware of potential resistance levels that could come into play if the pair attempts a recovery. The initial resistance to watch is at 1.3310. A breakout above this level could trigger a move towards the 1.3370 area.
If the bulls manage to push the price above 1.3370, the next significant level to watch would be the previous high of 1.3434. A move above this point would be necessary to challenge the current bearish outlook.
As the GBPUSD navigates these choppy waters, market participants will be closely monitoring how the pair reacts to these key levels. The price action in the coming sessions will provide valuable insights into whether this is a temporary pullback or the beginning of a more significant downward trend.