FX.co ★ GBP/USD

GBP/USD Daily Technical Analysis: The Daily chart of GBP/USD shows that price is trading close to a very important Supply zone around 1.33930, where selling pressure has already started to appear. I can see that the market first moved above the previous BSL, creating a LIQ sweep, but buyers failed to maintain momentum after that move. The appearance of the pin bar rejection candle inside the supply area suggests that higher prices were rejected by sellers, increasing the probability of a bearish reaction. I believe this rejection is an important warning because liquidity has already been collected above the previous highs, and the market often changes direction after such events. Price is currently trading near 1.34022, while the nearest resistance remains around 1.34461. As long as daily candles continue closing below this resistance and the supply zone remains respected, sellers may gradually regain control. I will continue watching whether another bearish confirmation candle develops because that would strengthen the possibility of a larger downside move. The overall structure also indicates that the recent bullish recovery is approaching a technical barrier rather than starting a fresh bullish trend. Although buyers have managed to recover from the lows, they have not produced a convincing breakout above the highlighted resistance, which keeps the current outlook cautious. A strong daily close above 1.34461 would weaken the bearish scenario, but until that happens, I think rallies into the highlighted zone may continue attracting selling interest.

The chart also highlights external structure below the current market, suggesting that the broader trend still has unfinished downside objectives. If sellers successfully defend the supply zone, I expect price could first revisit 1.33050, which is the nearest support level shown on the chart. A daily close below that level would increase the probability of extending the decline toward 1.31626, where another important support is located. From there, the market could continue moving toward the marked external LIQ, completing the liquidity objective illustrated on the chart. I believe this path matches the current market structure because the liquidity sweep above resistance has already provided a possible trigger for institutional selling. However, risk management remains essential because financial markets can quickly react to unexpected economic releases from the United Kingdom or the United States. Strong employment data, inflation figures, central bank comments, or changes in interest rate expectations could temporarily invalidate the technical setup. Even so, as long as price remains below 1.34461 and continues respecting the highlighted supply zone, I prefer to view upward movements as corrective rather than the beginning of a sustained bullish trend. A confirmed bearish rejection followed by increasing selling volume would provide stronger confidence that the market is preparing for a move toward the lower support levels and eventually the external liquidity target shown on your chart.