GBPUSD – Weak Rebound Before Returning to the Downtrend?After a brief technical recovery, the British pound is losing momentum as recent data shows inflationary pressure in the UK continues to cool. The UK Shop Price Index fell for the first time since March, while food prices recorded their sharpest decline in nearly five years — clear signs that inflation is easing faster than expected.
This increases the likelihood that the Bank of England (BoE) will soon loosen its monetary policy, leading to a slight weakening of GBP against the USD.
On the H4 chart, GBPUSD is trading within a descending channel that has extended since early October. The recent swing highs continue to form lower, reflecting strong control by the bears.
Currently, price is retracing toward the 1.3400 zone, where the descending trendline, the EMA34, and a previous static resistance converge. This area is seen as a key barrier — if the price fails to break above it, GBPUSD is likely to turn lower toward 1.3300, possibly retesting 1.3250 in the short term.
Overall, the main trend remains mildly bearish , with the USD maintaining strength while the GBP remains weighed down by rate-cut expectations.
