• GBP/USD downtrend intensifies, with momentum signaling further downside as RSI nears a break below neutral.
• Key support at 1.3044 could trigger deeper losses, with the 50-DMA at 1.2933 and the 1.2900 mark as critical levels.
• Buyers must reclaim 1.3239 for a bullish continuation and to regain upward momentum.

The GBP/USD begins the North American session down by over 0.30% on Monday as traders trim the chances of a 50-basis point Fed interest rate cut in ten days. At the time of writing, the pair trades at 1.3075 after reaching a high of 1.3143.

GBP/USD Price Forecast: Technical outlook

The GBP/USD has fallen below the 1.3100 mark, though the uptrend remains intact unless sellers grab the pair below the July 17 high of 1.3044, which could open the door for a deeper pullback.

Momentum suggests further downside. The Relative Strength Index (RSI) is about to punch below its neutral line, which could spark a sell-off. Therefore, in the short term, the path of least resistance is tilted to the downside.