GBPUSD Faces Downside Pressure as Bearish Wedge Pattern Signals Further Decline

Market Overview

GBPUSD remains under selling pressure after failing to sustain bullish momentum near a key resistance zone. On the daily timeframe, price has resumed its downward movement following the formation of a corrective structure that resembles a bearish wedge pattern within a larger corrective cycle.

The inability of buyers to break above the descending resistance line suggests that bearish sentiment continues to dominate the market.

Technical Analysis

Current price action indicates the possible development of an A-B-C corrective structure, where waves (a) and (b) may have already completed, while wave (c) appears to be unfolding.

The recent rejection from the upper boundary of the smaller wedge formation further strengthens the bearish outlook. This technical behavior suggests that sellers remain in control and could push the pair lower in the coming sessions.

Meanwhile, the Awesome Oscillator (AO) continues to show weakening momentum, supporting the possibility of an extended downside move.

Downside Target

If bearish momentum continues, traders will focus on the Fibonacci Extension 423.6% zone, which serves as the next major support area and potential downside target.

A decisive break below recent lows could accelerate selling pressure and increase the likelihood of price reaching this projected target area.

Alternative Scenario

The bearish outlook would become less convincing if GBPUSD manages to break above the descending trendline resistance and establish sustained trading above the current resistance region. Such a move could signal a more complex corrective phase before the next directional trend emerges.

Conclusion

GBPUSD continues to display bearish characteristics after failing to maintain its upward momentum. The current wave structure and wedge formation suggest that wave (c) may still have room to extend lower. As long as price remains below the key descending resistance line, the risk of further declines toward the Fibonacci 423.6% target zone remains the preferred market scenario.