The GBPUSD pair has fallen below a key support level of 1.2860 as the US session approaches. This follows a shift in market sentiment after Trump’s tariffs announcement, which initially weakened the USD but later saw it recover.
Traders are observing a major trendline as a potential point for buying if the selloff continues. Sellers are looking for a break lower, eyeing a target of 125.50.
Current Trading Position
On the 4-hour chart, the pair’s current trading position at 1.2860 suggests that sellers may increase their activity, while buyers hope to regain momentum and push prices higher.
The article you’re reading discusses the recent price movements of GBPUSD, focusing on its fall below a previous support level of 1.2860. This happened as sentiment in the currency markets shifted in response to newly announced US tariffs. When these tariffs were first mentioned, the US dollar weakened, likely due to concerns about trade implications. However, what followed was a turnaround, with the greenback managing to claw back some strength. This recovery pressured the British pound downward, dragging the pair below its recent support.
There’s a broader technical picture being considered, particularly by those studying the 4-hour chart. At this timeframe, the 1.2860 mark isn’t just any number — it’s acted as a line in the sand for several recent sessions. Some participants now believe that if the downward momentum keeps building, that could open up a path toward deeper levels. The 125.50 area sits further down, and there are already eyes on that zone as an area where sellers might step in more aggressively.
Near Term Opportunities
From where we stand, if price continues dipping through that key trendline being watched, we would likely see short positions being added. Folks are not just looking to sell at any price — they’re targeting levels where momentum aligns with their directional view. Meanwhile, on the other side of the trade, buyers are still hanging around — some view this area as oversold in the short run and are simply waiting for a shift in order flow.
The way we’re looking at this, near-term opportunities may appear quickly, especially if the pair starts rejecting the current zone again. Any sudden bounce higher, particularly on light volume, probably won’t last unless it’s backed by new data or policy direction. Powell’s team has been clear about their stance on inflation — and anything surprising from upcoming US economic releases may tip the scale again.
This isn’t the kind of market to jump into without clear confirmation. For now, pressure remains on the downside. There’s some hesitancy building among buyers, and unless we see a decisive rebound soon, more participants will start reducing exposure or flipping bias altogether.
In our view, keeping close tabs on the early European and US sessions will be important, as that’s when liquidity returns and setups tend to mature. It’s not about guessing — watching for structure to form around 1.2850 or lower gives better clarity than trying to catch sudden reactions. Conditions are driven by flows, and for the time being, directional conviction remains limited unless the price retraces with strength.
