Upon examining the monthly chart, it becomes evident that GBP is facing a significant hurdle at the high of $1.3142. This level, located close to the resistance of $1.3111, must be surpassed for a long-term uptrend to be established. Failure to breach this level could result in a downside target of $1.2173, which is currently seen as the next logical support level for GBP bears. The trend indicators on the monthly chart favor sellers, particularly if the price drops below $1.2173.
The daily chart displays a clear downtrend pattern, with lower lows and lower highs being formed since reaching a peak at $1.2894. This downtrend is further supported by the Relative Strength Index (RSI) testing below the 50.00 centreline, suggesting potential resistance in the near future.
A closer look at the H1 timeframe reveals that the price action concluded the week below the resistance level of $1.2530, just before the $1.25 mark. The area above this resistance level highlights a prime resistance zone ranging from $1.2583 to $1.2560. Considering the bearish long-term trend and the daily price testing resistance at $1.2527, sellers may find opportunities at the $1.2530 resistance level or the prime resistance zone for initiating short positions.
The GBP is currently facing significant resistance levels on multiple timeframes, indicating a potential downtrend in the near future. Traders should closely monitor the key resistance levels mentioned above for potential selling opportunities, with downside targets set at $1.25, followed by H1 support at $1.2459 and possibly $1.24. It is crucial to consider the overall trend direction and price action signals before making any trading decisions in the GBP market.