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The GBP/USD pair has been showing a consistent downward trend, with recent price action providing valuable insights for traders. Let’s break down the key levels and potential scenarios to watch.

Recent Developments
 

• GBP/USD has extended its downside move from 1.3044 to a low of 1.2806
• The pair is currently trading within a falling price channel visible on the 4-hour chart

Bearish Scenario
 

As long as the price remains within the falling channel, we can expect the downward trend to continue. Key targets to watch:

1. Next support: 1.2780
2. Further downside target: 1.2710 area

Potential Bullish Reversal
 

While the current trend is bearish, traders should be prepared for a potential reversal. Here’s what to look for:

1. Key level: Channel resistance (upper boundary of the falling channel)
2. If price breaks above the channel: Watch for a move towards 1.2888
3. Above 1.2888: This could signal the completion of the downward move from 1.3044
4. Next bullish target: 1.2940 area

Conclusion
 

The GBP/USD pair is currently showing strong bearish momentum within a falling price channel. While the downtrend remains intact, traders should stay alert for any potential breakout above the channel resistance, which could signal a shift in the short-term trend.

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