GBPUSD Faces Sustained Downside Momentum With Bearish Technical Outlook

Market Analysis – August 25

GBPUSD continues to face sustained downside momentum with a bearish technical outlook. The pair has recently experienced notable selling pressure, with its price action aligning closely with a bearish bias as reflected in the broader structure. The 9-day SMA (Simple Moving Average) remains positioned above current trading levels around $1.3500, signaling ongoing weakness in momentum, while the RSI (Relative Strength Index) reading near 52.91 reflects limited bullish conviction. This combination suggests that the pair has transitioned from previous upward swings into a consolidation phase, with sellers gradually regaining control.

GBPUSD Key Levels

Supply Levels: $1.3630, $1.3800, $1.4000
Demand Levels: $1.3330, $1.3050, $1.2710

GBPUSD Long-Term Trend: Bearish

From a structural perspective, the market recently confirmed a break of structure (BOS) at $1.3370, strengthening bearish sentiment. Several rejections occurred near the $1.3630 resistance zone, where supply from the order block has consistently capped upward attempts. Sellers have firmly defended this region, creating a series of lower highs. The subsequent downward movement has reinforced the bearish framework, with the inability to reclaim $1.3630 highlighting seller dominance.

Looking ahead, the prevailing bearish trajectory points toward further downside potential, with $1.3330 emerging as the nearest key support. A clear break below this level could open the way for a decline toward $1.3140, with an extended move possibly reaching $1.3050. Unless buyers manage to reclaim $1.3630 with convincing volume, market sentiment is expected to remain weighted to the downside. Traders monitoring forex signals may view these support and resistance zones as critical decision points.

GBPUSD Short-Term Trend: Bearish

On the short-term outlook, GBPUSD is trading below the 9-period SMA, confirming persistent bearish pressure on the four-hour chart. The repeated rejection at the $1.3630 order block reinforces strong resistance, keeping sellers in control.

The recent break of structure near $1.3370 further validates downside momentum. Current price action points to a move toward $1.3140, with a possible extension to $1.3050 if selling pressure continues.

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