GBPUSD | Daily Technical Outlook
Market Structure
GBPUSD is showing renewed downside pressure after failing to sustain its recent recovery above the 1.3700 area. The pair formed a strong bullish leg earlier, but momentum has faded, and price is now drifting lower, trading around the 1.3600 handle.
On the daily timeframe, the pair remains within a broader recovery structure from previous lows; however, the latest rejection from the 1.3800 region suggests short-term corrective weakness. Lower timeframes confirm bearish momentum, with price trading below short-term moving averages and forming a sequence of lower highs.
Key Resistance Zone
Immediate resistance is located at 1.3650 – 1.3700, where recent breakdown and selling pressure accelerated.
Additional resistance levels:
- 3750
- 3800 – 1.3850 (major rejection zone)
As long as GBPUSD trades below 1.3700, upside attempts are likely to face selling pressure.
Key Support Zone
Immediate support is seen at 1.3550 – 1.3580, where price is currently attempting to stabilize.
A break below this zone would expose deeper downside targets:
- 3500 (psychological support)
- 3400 – 1.3450 (major structural support)
A sustained move below 1.3400 would signal a deeper bearish correction within the broader structure.
Expectations
Bearish Scenario (Primary)
Momentum currently favors further downside while price remains below 1.3700.
If 1.3550 breaks, GBPUSD could extend losses toward 1.3500, with potential continuation toward 1.3400.
Bullish Scenario (Alternative)
A recovery above 1.3700 would signal short-term stabilization, opening the door toward:
- 3750
- 3800 – 1.3850
However, buyers must reclaim 1.3800 to re-establish stronger bullish control.
Outlook
GBPUSD is under short-term bearish pressure following rejection from higher levels. While the broader structure is not fully invalidated, the pair remains vulnerable to additional downside as long as it trades below 1.3700. A break below 1.3550 could accelerate losses, whereas only a decisive recovery above 1.3800 would shift momentum back in favor of buyers.
