GBP/USD Bearish Momentum Accelerates as Cable Tests Consolidation Lows

The British pound (GBP) against the US dollar (USD) has seen bearish momentum accelerate sharply after last week's rate decision, breaking a rising trendline that had carried the currency pair from its June lows towards the top of its broader trading range.

Price has since consolidated close to last week's lows rather than staging a meaningful recovery, with two almost identical four-hour lows defining the bottom of this consolidation. This creates a clear test of whether the bearish momentum can extend into the new week.

Cable's bigger picture is important here because its short-term structure has changed significantly. Last week's sell-off looks different depending on which piece of structure we focus on. The rally from the June low carried GBP/USD almost the full distance back towards range resistance, before momentum began to fade in late August.

A sequence of lower highs followed, and last week's acceleration decisively broke the rising trendline that had supported the move from June. This bullish structure has now been lost, leaving the question of whether last week's acceleration can turn this change into a more sustained move towards the lower half of the range.