⬤ GBP/USD just had a sharp reversal. The pair completed its monthly range, pushed higher — and then got rejected right at the top. On the 4-hour chart, you can see price rotating lower after that failed breakout. Here's the thing: that close back inside the range kicked off a bearish structure on the 6-day candle, and that changes the short-term picture entirely.
⬤ After the impulsive rally ran out of steam near the upper boundary, GBP started consolidating lower instead of pushing the breakout further. That's a textbook early sign of a bearish range forming. With two days left before the 6-day candle closes, the setup is pointing toward the lower end of the range — not upward.
⬤ The projected price paths on the chart are now pointing toward the range low as the next magnet. The failure to hold above resistance has clearly shifted the weight toward lower support zones. As long as price stays inside the broader structure without a bullish confirmation, downside pressure stays in charge.
⬤ Why does this matter beyond GBP/USD? Because failed range expansions tend to trigger short-term sentiment resets across the FX market. The key question right now is simple: does GBP confirm a drop toward the range low, or does it reclaim the upside and invalidate the whole bearish setup?
