The GBP/USD pair is vulnerable to further declines this week, following multiple upside rejections and uncertainty towards Brexit risk-events.
GBP to USD analysis shows a sustained break under the 1.3000 level should be considered extremely bearish for the pair.
GBP/USD medium-term price trend
GBP/USD technical analysis shows that the pair has suffered multiple technical rejection, with traders selling any decent moves higher in the pair.
Sterling is now moving closer to the 1.2900 level, which proved to be a pivotal level for the currency pair during the last months of 2019.
Traders will remember that once the GBP/USD started to hold above the 1.3000 level in December it provoked a major breakout in the pair.
A loss of the1.3000 level is likely to be seen as equally negative for the GBP/USD pair and could cause capitulation towards the 1.2800 level.
Currently, the 1.2964 level is key support, although it would not be surprising if this level was breached fairly quickly, following a confirmed breakout under the 1.3000 level.
Overall, watch out for the 1.2965 to 1.3100 price range to decide the next major medium-term move in the GBP/USD pair.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair is starting to turn bearish over the short-term for the first-time since late-December 2019.
Traders should be cautious about the GBP/USD pair while price trades under the 1.3060 level, as this is the key short-term pivot point.
The recent series of bearish rejections and also increased uncertainty towards Brexit negotiations could see the GBP/USD pair turning bearish over the short term for some time.
Traders must move price above the 1.3100 level and break above the 1.3190 resistance area to change the dynamics behind this pair.
It is currently hard to see how the GBP/USD pair can rally without bullish fundamental news, or indeed broad-based weakness in the greenback.
Short-term traders are likely to continue fading any upside rallies in the GBP/USD pair this week.
GBP/USD technical summary
GBP to USD analysis points to more losses towards the 1.2900 level, with the 1.2800 support level another bearish target.
Weakness under the 1.2964 support level this week should accelerate technical selling.