GBPUSD Encounters Renewed Downside Bias Under Weakening Structure

Market Analysis – December 22

GBPUSD encounters renewed downside bias under a weakening structure. The GBPUSD market is displaying a softening technical profile, as price behavior increasingly aligns with a bearish directional bias across multiple trend-based indicators. The pair continues to trade below key dynamic references, including the short-term moving average near $1.3380, reflecting fading upside sustainability. Momentum conditions remain muted, with the MACD hovering near neutral and failing to show expansion, reinforcing an environment where selling interest remains tactically dominant.

GBPUSD Key Levels

Supply Levels: $1.3330, $1.3630, $1.3800
Demand Levels: $1.3050, $1.2710, $1.2550

GBPUSD Long-Term Trend: Bearish

Upside attempts have repeatedly stalled beneath established supply zones between $1.3500 and $1.3630, preserving a structure of descending highs. Consecutive bearish shifts in market structure indicate that prior demand areas are no longer attracting sustained buying interest. The rejection from the $1.3450–$1.3500 corridor, followed by consolidation below $1.3400, highlights ongoing redistribution, while nearby supports at $1.3330 and $1.3250 continue to erode under persistent pressure.

Looking ahead, the prevailing configuration supports further downside development as long as price remains capped below $1.3500. A decisive break beneath $1.3330 would likely redirect focus toward the $1.3050 level, with scope for deeper extension toward $1.2710 if bearish momentum accelerates. Any recovery into the $1.3500–$1.3630 region is more likely to be corrective in nature, aligning with broader forex signals rather than indicating a structural reversal.

GBPUSD Short-Term Trend: Bearish

On the four-hour timeframe, GBPUSD is losing upside momentum, with price struggling to sustain trade above the short-term moving average near $1.3380. Momentum indicators are flattening, as the MACD remains compressed around the zero line, suggesting weakening bullish participation.

Technically, price is consolidating below the $1.3400 resistance while repeatedly testing rising support near $1.3330, signaling increasing downside pressure. A confirmed break below $1.3330 would likely accelerate declines toward $1.3250, reinforcing the prevailing bearish bias.

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