GBPUSD has been on a downward trend for the past four weeks, dropping below the 1.3000 mark and hitting a new low of 1.2943. Technical indicators show that there is still a strong selling pressure on the pair. However, there is a long-term support trendline at around 1.2950 that is currently providing some protection for the overall uptrend.
If the pair closes below the 1.2950 level, it could lead to a further decline towards the 200-day simple moving average at 1.2800. This decline may continue towards the 50% Fibonacci retracement level at 1.2863, with potential pauses at the 61.8% Fibonacci level at 1.2730 or even extend towards the August low of 1.2663. In the worst-case scenario, the pair could approach the ascending line connecting the October 2023 lows at 1.2555.
On the other hand, if GBPUSD manages to rise above the 1.3000 level, it could aim for the 20- and 50-day simple moving averages around 1.3120, as well as the 23.6% Fibonacci level at 1.3160. A successful break above these levels could push the pair towards the August high of 1.3265.
In conclusion, although GBPUSD is currently showing a bearish trend, the long-term support at 1.2950 might allow for some recovery. Traders should remain vigilant for any potential shifts in market momentum.
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