GBPUSD | Bearish Rejection & Downside Potential Setup

British Pound / U.S. Dollar Short 20 hours ago 6 Grab this chart Grab this chart 6 6 150 GBPUSD | Bearish Rejection & Downside Potential Setup Fundamental View GBPUSD remains under pressure as the U.S. dollar strengthens ahead of the Federal Reserves September 15–16 meeting. Markets are now heavily pricing a 25-basis-point Fed rate hike, with Reuters reporting that 85% of economists expect the move. Rising U.S. Treasury yields are also supporting the dollar, with the 10-year yield recently moving above 5%, increasing pressure on GBPUSD. This combination of stronger USD momentum, elevated yields and increased Fed-hike expectations creates a challenging environment for the pound in the short term. Technical View On the 1H chart, GBPUSD is showing a clear bearish structure after rejecting the descending trendline and the 1.35051–1.35111 resistance area. Price is currently trading below the Supertrend, while the descending trendline continues to cap upside attempts. The recent rejection suggests sellers remain active around the resistance/BSL zone. A sustained break below the 1.34634 support area could open the way toward the first target at 1.34386, followed by the broader downside target at 1.33985. SMC View From an SMC perspective, the recent move toward the 1.3500–1.3511 region can be viewed as a potential buy-side liquidity sweep followed by rejection. The failure to hold above the descending trendline strengthens the bearish structure. If sell-side liquidity below 1.34634 is taken decisively, GBPUSD could continue toward the lower liquidity zones around 1.34386 and 1.33985. This Move Is Supported By • Strengthening U.S. dollar • Increased Fed rate-hike expectations • Elevated U.S. Treasury yields • Rejection from the descending trendline • Bearish 1H market structure • Rejection from the 1.35051–1.35111 area • Potential sell-side liquidity below 1.34634 Trading Scenario Bearish Scenario: If GBPUSD remains below 1.35051 and sellers maintain control, the bearish continuation setup remains in focus. A confirmed break below 1.34634 could expose: Target 1: 1.34386 Target 2: 1.33985 Bullish Invalidation Scenario: A sustained move above 1.35111 would weaken the immediate bearish structure and invalidate this setup. A strong breakout above the descending trendline would then require a reassessment of the bearish thesis. Key Levels Resistance: 1.35051 Invalidation: 1.35111 Support: 1.34634 Target 1: 1.34386 Final Target: 1.33985 Professional Insights The 1.35051–1.35111 zone is the key decision area for this setup. As long as GBPUSD remains below this region and the descending trendline, sellers retain the short-term technical advantage. The most important confirmation would be a clean break and acceptance below 1.34634. A temporary wick below support should not automatically be treated as a confirmed breakdown; a sustained move or retest would provide stronger confirmation. Risk Management Major central-bank events can create sharp volatility, liquidity sweeps and false breakouts. Avoid relying solely on one technical level and manage position size according to your individual risk tolerance. The 1.35111 level is the key invalidation for this bearish setup. Disclaimer This analysis is for educational purposes only and does not constitute financial advice. Market conditions can change rapidly, especially around major central-bank decisions. Always conduct your own research and apply appropriate risk management.