Technical Outlook for GBP/USD: Cautious Recovery for the Pound after Consecutive Losses Near $1.31 — Will the Negative Momentum Continue?

The daily chart for GBP/USD shows the pair continuing to move within a well-defined downward channel since the peak near 1.3900, facing increasing selling pressure as it approaches the lower boundary of the channel. The price recently broke a key technical support level around 1.3300, reflecting weak bullish momentum and buyers’ failure to maintain trading above the moving average, reinforcing the short-term bearish outlook unless the pair quickly recovers above this area.

Technically, the pair is currently trading near the 78.6% Fibonacci retracement level around 1.3200, a historically pivotal support area representing the last line of defense before testing the psychological low at 1.3000. Price positioning below the daily moving average indicates a continuation of the downtrend, while the Stochastic momentum indicator shows a pullback from overbought levels, supporting the likelihood of continued selling pressure in the coming sessions, particularly if today’s daily close confirms below 1.3200.

From a technical perspective, the most likely scenario remains a continuation of the bearish trend, with the possibility of a limited corrective rebound toward the 1.3350–1.3400 area before resuming the decline. A clear break below 1.3180 could accelerate the downtrend toward 1.3000 and then 1.2900 in the medium term. Conversely, regaining trading above 1.3400 would temporarily weaken the negative momentum and open the door for an attempt to retest the main resistance near 1.3500.

Supports: 1.3100 — 1.3000 — 1.2900

Resistances: 1.3350 — 1.3400 — 1.3500