GBPUSD Outlook Points Towards Extended Downside Risk Ahead

Market Analysis – August 11

GBPUSD continues to face extended downside risk, with the daily chart showing the pair under persistent bearish pressure. Recent trading activity remains below the short-term 9-day Simple Moving Average (SMA) at $1.33320, reinforcing the prevailing negative bias.

Although the RSI has rebounded to 53.86, signaling some short-term recovery momentum, the broader structure still aligns with a bearish outlook following the prior break of structure (BOS) to the downside. Current price action at $1.34660 sits within a wider resistance zone capped by $1.35890 and $1.36320, a range that continues to limit bullish advances and sustain bearish sentiment.

GBPUSD Key Levels

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

GBPUSD Long-Term Trend: Bearish

Price action shows a clear rejection from the order block near $1.35890, followed by a decisive drop below the $1.33650 support before retracing higher. The recent bullish pullback appears corrective, with price approaching the previously broken demand zone—now functioning as a supply zone between $1.33650 and $1.36320. Each rally within this structure has met renewed selling pressure, confirming the market’s bearish tone.

Looking ahead, the bearish scenario remains intact as long as price fails to hold above $1.36320. Rejection within this supply zone could trigger a fresh decline toward $1.33320 and $1.32040, with the possibility of an extended move to the $1.30480 support zone. If selling momentum strengthens further, a medium-term test of $1.27140 could follow. Alternatively, only a sustained breakout above $1.36320 would challenge this outlook, potentially paving the way for a move toward $1.38000. Traders monitoring forex signals may find these levels significant in shaping their positioning strategies.

GBPUSD Short-Term Trend: Bearish

In the short term, GBPUSD is approaching a key supply zone near $1.35370 after a strong corrective rally from the $1.31410 low. Price is moving within an ascending channel, but momentum is showing signs of fading as RSI hovers around the overbought level at 70.82.

The prevailing structure remains bearish following the earlier break of structure and rejection from the order block zone. A rejection in this area could trigger a move lower toward $1.33320, with the potential for a further drop to $1.31410.

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