GBP/USD has encountered resistance at the falling trend line on the 4-hour chart, failing to break above it and subsequently pulling back from 1.2271. This suggests that the bounce observed from 1.2109 could be considered as a consolidation phase within the larger downtrend from 1.3141.
As long as the price remains below the trend line, there is a possibility of the downside move resuming, with the next target to consider around the 1.2000 area.
On the upside, a breakout above the trend line resistance would indicate that a lengthier consolidation phase for the downtrend is taking place. In this scenario, the next resistance level to monitor would be around the 1.2400 area.
Traders should closely monitor the price action, paying attention to the behavior around the falling trend line and the mentioned support and resistance levels. These levels can provide insights into potential breakout or reversal signals.