GBPUSD: Bearish Drop to 1.327?

Dec 24, 2025

As the previous analysis worked exactly as predicted, GBPUSD is eyeing a bearish reversal on the 4-hour chart, with price testing a key resistance zone after forming lower highs in a downward channel, converging with a potential entry area that could spark downside momentum if sellers defend amid recent volatility. This setup hints at a pullback opportunity in the uptrend, targeting lower support levels with risk-reward exceeding 1:2.🔥

Entry between 1.3586–1.3660 for a short position (entry at these levels with proper risk management is recommended). Target at 1.3268. Set a stop loss at a close above 1.3728, yielding a risk-reward ratio of more than 1:2. Monitor for confirmation via a bearish candle close below entry with rising volume, leveraging the channel's bearish bias.🌟

Fundamentally, GBPUSD is trading around 1.351 in late December 2025, with no major high-impact economic releases for GBP or USD this week due to Christmas (December 25) and New Year holidays, resulting in thin trading volumes and potential increased volatility from low liquidity. Markets are expected to remain quiet, with focus shifting to upcoming data in early January 2026. 💡

📝 Trade Setup
🎯 Entry (Short):

1.3586 – 1.3660
(Entry at these levels is valid with proper risk & capital management.)

🎯 Target:

1.3268

❌ Stop Loss:

• Close above 1.3728

⚖️ Risk-to-Reward:

• > 1:2

💡 Your view?
Does GBPUSD reject the 1.36 resistance zone and rotate lower toward 1.3268, or will thin holiday liquidity fuel a squeeze higher first? 👇

Also, Merry Christmas :))

Jan 8

Trade active

Trade was activated !