GBPUSD remains at risk of more downside, but sellers need to be very careful as there can be a nasty spike which could lift the market sentiment anytime.
Technical Analysis
GBPUSD is following a monster bearish trend line which was the reason of failure to gain strength recently. The most important resistance is around the 100 and 50 simple moving averages, which formed a confluence area and halted the upside on a number of occasions. The pair has currently formed a solid bearish structure which might ignite more losses moving ahead. We need to see how the pair trades in the coming sessions and if retests the mentioned confluence area, then buyers might struggle again. Recently, the pair tested the 61.8% Fibonacci retracement level of the last move from the 1.5826 high to 1.5586 low. Only a break above the mentioned confluence area and the highlighted trend line might negate the bearish view in the near term.
If the GBPUSD pair continues to trade lower from the current levels, then initial stop is seen around the last low of 1.5586. A break below the same could take it towards the 1.5500-20 support area. The 4H RSI has moved below the 50 mark, which can be considered as a bearish sign.
Moving Ahead
There is no doubt that the GBPUSD is under immense pressure and might continue heading lower. However, on the other side there remains a risk of an upside reversal. If the British pound buyers get any reason to take it higher, we might witness sharp gains in GBPUSD.