The GBP/USD pair continues to move downwards from the level of 1.3164. But, the pair rose from the level of 1.3009 to the resistance around 1.3164. Also it should be noted that the pair has rebounded from the bottom of 1.3009 to close at 1.3164.
Today, the first support level is seen at 1.3105, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.3164, which coincides with the 38.2% Fibonacci retracement level.
This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the GBP/USD pair is able to break out the first support at 1.3105, the market will decline further to 1.3009.
Therefore, there is a possibility that the GBP/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside on large chart (not on hourly chart).
This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.2950 so as to test the daily support 2.
However, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bullish wave at 1.3325.