GBPUSD Reflects Emerging Downside Bias As Momentum Conditions Soften

Market Analysis – December 8

GBPUSD reflects emerging downside bias as momentum conditions soften. The pair is beginning to show signs of a weakening technical posture, struggling to maintain movement above the short-term average near $1.3270. Momentum readings continue to fade as the RSI drops from recent recovery highs, indicating reduced upside participation and a broader loss of bullish strength. This combination of declining momentum and moderating price behaviour places the market in a vulnerable position that supports a renewed bearish tilt.

GBPUSD Key Levels

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

GBPUSD Long-Term Trend: Bearish

Structurally, price has once again reacted negatively to the supply zone between $1.3330 and $1.3370, failing to secure a decisive break above this upper liquidity pocket. The latest rejection is consistent with prior sell-side order-flow tendencies, while repeated structure breaks along the descending leg reinforce the prevailing downward bias. The market remains below a significant dynamic barrier, and the lack of higher highs continues to underscore the influence of sellers.

Forward projections favour additional downside movement, with the intermediate support zone near $1.3050 serving as the next logical target for liquidity draw. A confirmed break beneath this level could open the door for a broader decline toward $1.2710, especially if external market flows remain unfavourable to sterling. Unless buyers reclaim and hold price above $1.3370, the broader outlook stays bearish, hinting at further revaluation toward lower price regions.

GBPUSD Short-Term Trend: Bullish

GBPUSD continues to maintain a constructive bullish tone on the four-hour chart as price trades steadily above the short-term SMA near $1.3340. The pair is consolidating just below minor resistance, with RSI readings above 60 indicating persistent upward momentum. A corrective move into the $1.3200–$1.3240 four-hour order block would likely attract renewed buy-side interest, supporting a continuation toward the $1.3400–$1.3450 supply region once a higher-low formation is confirmed. This short-term structure provides useful insight for traders monitoring forex signals.

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