Key Highlights · The British pound declined sharply and traded below 1.2800 recently against the US dollar. · There is a crucial bearish trend line in place with resistance at 1.2880 on the 4-hours chart of GBP/USD.
GBPUSD Technical Analysis Looking at the 4-hours chart, the pair was under a lot of bearish pressure below the 1.3000 support. It followed a bearish structure and declined below the 1.2800 level. A new monthly low was formed at 1.2779.
The pair is currently consolidating losses above the recent low and it is facing a lot of hurdles on the upside near 1.2880 and 1.2900. There is also a crucial bearish trend line in place with resistance at 1.2880 on the same chart.
Moreover, the 50% Fib retracement level of the recent decline from the 1.3044 high to 1.2779 low is around 1.2900 to act as a solid resistance. Therefore, it won’t be easy for buyers to push GBP/USD above the 1.2880 and 1.2900 resistance levels in the near term.
On the downside, if there is a break below the 1.2770-1.2775 area, the pair is likely to decline towards the 1.2720 support area.