GBP/USD Price Analysis: Set-up remains tilted in favour of bearish traders

• GBP/USD trimmed a part of its early recovery move to 1.2300 round-figure mark.
• Break below the double-top neckline support supports prospects for further slide.

The GBP/USD pair struggled to capitalize on its attempted recovery move from three-week lows and has now retreated over 30 pips from daily tops, around the 1.2300 mark. The mentioned level marks a multi-week-old ascending trend-line support breakpoint – also marking the neckline of a bearish double-top pattern formed on the daily chart.

Meanwhile, technical indicators have just started drifting into the negative territory on the daily chart and support prospects for a further near-term depreciating move. Some follow-through selling below the 1.2250-45 region will add credence to the bearish set-up and accelerate the fall further towards the 1.2200 round-figure mark.

The downward trajectory could further get extended towards April monthly swing lows support, around the 1.2145 region, before the pair aims towards testing the 1.2100 mark.

On the flip side, any meaningful recovery attempt beyond the 1.2300 area might now confront a stiff resistance and seems more likely to remain capped near the 1.2330-35 region. That said, a convincing breakthrough the 1.2330-35 supply zone might prompt some short-covering move and lift the pair further towards reclaiming the 1.2400 round-figure mark.

GBP/USD 4-hourly chart

Technical levels to watch