August 9, 2022 04:53 AM ET
By: AnalysisWatch
GBP/USD loses upward momentum and falls back to 1.2082 by the opening of Tuesday in London.
However, the cable pair remains within the weekly megaphone trend extension formation.
However, the downward movement since last Monday combined with the lower high on the RSI and prices keeps sellers hopeful.
GBP/USD sellers could fall to the 61.8% Fibonacci retracement of the July 21-August 01 uptrend at 1.2045.
However, the lower line of the aforementioned megaphone and the July 21 low at 1.1940 and 1.1890, respectively, could challenge the pair's bears before heading towards the yearly low at 1.1760.
Alternatively, the recovery moves need to overcome the bearish continuation pattern by breaking the 1.2115 hurdle.
Nevertheless, the 200-HMA hurdle at 1.2155 poses an additional challenge for GBP/USD bulls before targeting the monthly high at 1.2293.
In summary, GBP/USD weakness is likely to continue, but the chances of more volatility are high.
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