GBP/USD continues to trade under pressure after several weeks of steady downside movement. Price is currently sitting on the 1.3020–1.3050 support region, a level that has repeatedly acted as a reaction zone throughout the year.
The recent rejection from the 1.3400 resistance area, paired with moving averages now sloping downward, reinforces a bearish momentum shift.
On the daily chart, price is forming lower highs and lower lows, reinforcing a short-term bearish trend. If GBP/USD breaks cleanly below 1.3020, the next logical downside targets fall toward 1.3005, and deeper into the prior liquidity zones at 1.2881 and 1.2713, areas where order flow has historically accumulated.
Meanwhile, overhead resistance remains layered at 1.3266 and 1.3407, followed by 1.3475 and 1.3624 on extended rallies. As long as price stays below these resistance levels, sellers maintain the advantage.
Zooming out to the weekly timeframe, the broader structure shows the pound failing to sustain momentum above the 1.34 handle, a ceiling that continues to reject bullish attempts.
For buyers to regain control of the mid-term trend, GBP/USD would need to reclaim and hold above 1.3400, signaling a meaningful shift in sentiment. Without this, any bounces from support are likely to be corrective rather than trend-reversing.
My takeaway:
The bias remains bearish while GBP/USD trades below 1.3400. A decisive breakdown beneath 1.3020 opens the door toward 1.3005, 1.2881, 1.2713, while any bullish recovery attempts are limited unless price can reclaim the mid-1.34s.