The GBP/USD currency pair has further extended its downward movement, declining from 1.2745 to a low of 1.2369. Currently, as long as the price remains below the falling trend line on the 4-hour chart, the downside move is likely to persist, with the next target potentially around the 1.2300 area.
However, on the upside, if there is a breakout above the trend line resistance, it could lead to a retracement towards the 1.2547 level. A successful breach of this level would suggest that the downside move has potentially completed, indicating a possible reversal, and the next target would be around the 1.2650 area.
Traders should closely monitor the price’s interaction with the falling trend line and be prepared to react accordingly based on potential continuation or reversal signals.