The GBP/USD pair has started to turn lower after finding strong technical resistance from the 1.3280 area last week.
GBP to USD analysis shows that further losses remain possible if buyers struggle to secure the pair above the 1.3375 resistance level.
GBP/USD medium-term price trend
GBP/USD technical analysis shows that pair is still technically bullish on all fronts, despite the recent sharp technical correction from the 1.3500 level.
The recent rally created a large inverted head-and-shoulders pattern, that continues to highlight that the GBP/USD pair still has upside potential over the medium term towards the 1.3800 level.
Failure to secure the GBP/USD above the neckline of the bullish pattern, around the 1.3375 level, creates a problem for traders that are bullish towards the pair.
A price floor was recently established around the 1.2900 level, however, traders will need further technical confirmation that the downside correction in the GBP/USD pair is now over.
Continued gains above the 1.3000 level should be considered a sign that a continuation of the next up move may be coming.
A loss of the 1.3000 level could prompt a test of the1.2900 level again. Traders should closely monitor the 1.3000 level for signs of possible upside or downside exhaustion this week.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair is bullish over the short term while price trades above the 1.3036 level.
Traders may be sidelined until the GBP/USD short-term trade becomes clearer, as they await a break from the 1.2900 or 1.3175 price range.
Despite the short-term bullish bias, the GBP/USD pair remains pressured in the short-term while trading under the 1.3175 level according to Ichimoku analysis.
A loss of the 1.3036 level would indicate that sellers are likely to test towards the December 23rd trading low, around the 1.2900 level.
Furthermore, a bearish triple-top pattern formation is in play across the lower time frames.
A loss of the 1.2900 level could expose the GBP/USD pair to heavy selling towards the 1.2820 level and possibly lower.
Looking at the upside potential for the GBP/USD pair in the short-term, sustained gains above the 1.3175 level should encourage traders to test towards the 1.3280 level once more.
The direction of the greenback and also the Non-Farm Payrolls job report this week also have the ability to heavily influence the GBP/USD pair.
GBP/USD technical summary
GBP to USD analysis points to an extended bearish correction while the pair trades below the 1.3375 resistance level.
Weakness under the 1.3000 support level this week could accelerate the recent pullback.
