GBP/USD Moves Lower

So over the last week price within the above GBP/USD chart has shown some bearish momentum which has led price back to the broken 1.30400 resistance turned support. Price has closed at this support which leaves us with two possibilities, a break or a rejection.

The market structure currently is printing higher highs and higher lows however, continuation through the 1.30400 support and past the previous higher low at 1.29365 would lead to a lower low with price heading towards the next support at 1.27700.

In both cases, market participants would need a boost from the fundamentals in order for the pair to regain its momentum. It is still to early to confirm a change in trend, however, it is worth noticing that the Sterling has taken a sizable chunk of the the US dollar lately, going from 1.10 to 1.30.

Chart: GBP/USD D1