GBPUSD Technical Analysis D1 Timeframe: GBP/USD is still trading inside a clear bearish channel, and I think the overall structure remains in favor of sellers until price proves otherwise. The market recently respected the lower boundary of the channel and produced a strong bullish recovery, but I see this move more as a correction instead of a complete trend reversal. Price has reclaimed the 1.33050 level after reacting from the external structure near 1.31626, showing that buyers are active in the short term. However, the main trend line of the channel is still acting as dynamic resistance, and the marked SBR area also supports the idea that previous support has already turned into resistance. I believe the next important area is the supply zone around 1.34150 to 1.34460, where the chart also shows BSL. This zone could attract fresh selling pressure because it combines horizontal resistance with the upper side of the bearish channel. I will watch carefully to see how price reacts if it reaches this area. A rejection with bearish candles would increase the probability that sellers are defending the structure once again. The LIQ zone marked below the supply area may first be targeted to collect buy-side liquidity before the market decides its next direction. That type of movement is common when price seeks liquidity before continuing with the dominant trend. As long as daily candles stay below 1.34460, I think buyers still face strong resistance, and I remain cautious about expecting a sustained bullish breakout.
The projected path on the chart suggests that after liquidity is collected near the supply zone, GBP/USD may resume its bearish movement and continue following the descending channel. I think this scenario remains valid because the market structure has not changed on the daily timeframe. Even if price briefly trades above the LIQ zone, I would still wait for confirmation before assuming a bullish trend has started. The bearish projection points toward the lower boundary of the channel and eventually targets the external liquidity marked near the bottom around 1.29500. This target also aligns with the idea of price seeking external liquidity after internal liquidity has been cleared. I believe any move toward the supply zone should be monitored for signs of rejection such as long upper wicks, bearish engulfing candles, or lower highs on smaller timeframes. If those signals appear, sellers may regain control and push the pair back below 1.33050, opening the way toward 1.31626 and then the external target. On the other hand, if buyers manage to break and close strongly above 1.34460 with good momentum, my bearish outlook would become weaker because that would suggest the channel resistance has failed. Until that happens, I continue to see rallies as opportunities for sellers rather than evidence of a complete trend reversal. I also keep an eye on economic releases from both the UK and the US because interest rate expectations, inflation data, employment figures, and political developments can create enough volatility to either support the technical rejection from the supply zone or invalidate the current bearish setup. Based on the structure shown on this chart, I still favor the downside while respecting the possibility of short-term bullish corrections before the larger bearish move unfolds.
