GBP/USD: Sellers still have the upper hand!

As the new trading week begins, GBP/USD has managed to bounce off its lows but remains under pressure near the 1.2400 level during early European trading on Monday. The pair appears vulnerable as the US dollar shows slight strength, fueled by concerns over new tariff threats from former US President Donald Trump and the growing fears of a global trade war.

From a technical perspective, the bearish trend continues to dominate, at least for now—especially in the short term, as clearly indicated by various signals on the price chart. Additionally, GBP/USD remains constrained and controlled below the 34 EMA and 89 EMA, reinforcing the downside pressure.

If we witness a corrective pullback, traders should closely monitor the 0.5-0.618 Fibonacci retracement zone, which may serve as an ideal area to look for short (sell) opportunities. This zone is where selling pressure is likely to increase, as traders target potential downside continuation.

Given the current market structure, I am still favoring short positions for GBP/USD at this stage. However, what are your thoughts? Do you agree with this bearish outlook, or do you see a potential upside reversal ahead? Let's discuss!