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GBP/USD is broken again!

On Tuesday (May 29th, in the European market, the pound (1.3370, -0.0005, -0.04%)/US dollar hit another new low during the year, and it has now fallen below the 1.3300 mark, hitting a low of 1.3278.

After barely rising in the previous day, the GBP/USD failed to extend its gains and further fell from the 1.3420 resistance level. Currently, the exchange rate has fallen below the 1.3350 support level and moved further into the bearish range.

From the four-hour perspective, a clear downward trend line has emerged from above 1.3450, and the mid-term movement high 1.3420 is currently the main resistance, restraining the pound rallies. As a result, the exchange rate dropped sharply below 1.3300, setting a new monthly low.

On the downside, the exchange rate tested the 123.6% Fibonacci extension of 1.3277 from the last wave of 1.3305 to 1.3277. Below this level, the exchange rate may test 1.3250 in the short term.

On the upside, on the 4 hours chart, two bearish trend lines emerged. The resistance is located at 1.3330 and 1.3375. If the bulls want to regain control, they need to rise above 1.3375 and overcome the 1.3400 mark.

At present, the medium-term resistance is located at 1.3390, which is also a pivotal level.

Overall, the dollar bulls are still in a dominant position, and the euro (1.1790, -0.0003, -0.03%)/US dollar and GBP/USD may continue the downward trend in the short term.