GBP/USD, Time frame: 4H, Source: TradingviewGBP/USD, Time frame: 4H, Source: Tradingview

GBP/USD had been respecting a well-defined ascending channel on the 4-hour timeframe, with higher highs and higher lows supporting the recovery from the June low. However, after failing to sustain momentum near the channel highs around 1.3450, price rotated lower and has now broken below the lower channel boundary.

1.3388 Turns Into Key Resistance

The most important level on the chart is the 1.33879 Point of Control (POC), marked by the bold black horizontal line. This level represents the highest concentration of trading activity within the visible range and has acted as a major area of market acceptance.

Price is currently trading below the POC, indicating that sellers have pushed the market beneath a key value area. As long as GBP/USD remains below 1.3388, this zone is likely to act as resistance rather than support.

High-Volume Area

The volume profile shows a substantial concentration of volume between 1.3360 and 1.3400, highlighting this region as an institutional fair-value area.

The recent break below this zone suggests the market is moving away from a previously balanced area and could begin searching for liquidity at lower price levels.

Low-Volume Zone Below Current Price

One notable feature of the volume profile is the relatively thin volume area between 1.3250 and 1.3300. This low-volume pocket represents an area where less trading activity previously occurred.

If downside pressure continues, price may move through this region more quickly due to the lack of significant historical participation compared with the higher-volume zone above.

RSI Supports the Shift in Momentum

The RSI is currently around 43.8, below the neutral 50 level and below its moving average. Momentum has clearly weakened from the highs seen earlier in July, indicating that bullish control has faded.

Importantly, RSI is not yet oversold, suggesting there is still room for further downside movement before momentum reaches extreme levels.