Analyzing the GBP/USD Downward Trend and Key Support Levels

Good morning, traders! Welcome back to our analysis corner, where today we’re diving into the GBPUSD pair. Let’s explore the latest trends and insights together.

GBPUSD market trading analysisGBPUSD market trading analysis:

The GBPUSD pair has been sliding down for three days in a row as of Tuesday, hitting its lowest point since November 17 during Asian trading hours.

The drop is being driven by speculators who are pushing the price lower. They’ve managed to bring the pair back down to the bottom of the monthly descending channel at 1.2440, which they are currently testing. They’re also eyeing last Friday’s low of 1.2430, just below this level. If they successfully break through this support zone, it could lead to a further decline towards the 1.2370 level. After that, there’s not much in the way of significant support until we reach 1.2220.

For the GBPUSD pair to reverse its downward trend and start moving up again, it would need to surpass the 1.2505 level. If it manages to do so, the next target would be 1.2565. This level is interesting because it contains an order block that hasn’t been tested yet. If the bulls can push the price past 1.2565, it might give them a new burst of energy.

Overall, the current situation is characterized by a downward momentum driven by speculators, with key support and resistance levels in focus for potential future movements.

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