GBPUSD Technical Analysis: As we can observe from the recent price action, the technical scenario outlined in my previous trading forecast has indeed begun to manifest in the market, albeit at a pace that can be characterized as rather slow and deliberate rather than aggressive. The sequence of events unfolded as anticipated with an initial rebound from the 1.3350 level, which was followed by a decline that successfully pushed the price down to a low of 1.3315. At this juncture, however, a temporary barrier was encountered. Sellers were prevented from driving the price any lower, which resulted in a noticeable but contained upward pullback that has currently retreated north to approach the 1.3340 area. Despite this short-term upward retracement, which is a common feature within any sustained trend, the core medium-term trading outlook remains firmly skewed towards the downside. The underlying market structure continues to suggest that the path of least resistance is south. I maintain the expectation for a continued decline in the sessions ahead, with the bears' primary target remaining a sustained fall towards the initial growth levels situated around the significant support zone of 1.3260. This level represents a critical technical benchmark. The market's behavior upon testing this 1.3260 level will be of paramount importance. A decisive break below this support, coupled with the ability for sellers to achieve a consistent consolidation beneath this previous local low, would constitute a powerful technical confirmation. Such a development would strongly indicate that the ongoing corrective rally has likely exhausted itself, paving the way for the GBP/USD pair to resume its broader, long-term downtrend. Therefore, from a strategic perspective, opportunities to initiate or add to short positions can still be considered from the current price levels, with the understanding that the overarching momentum is expected to reassert its bearish bias, targeting a test of the key 1.3260 support.
