The British pound fell to a two-month low into Friday’s close.
The declines came about after the currency failed to hold on to the support level near 1.2277.
The descending triangle pattern forming as a result, is validated after the breakout below the support area.
The downside target for GBPUSD is now at 1.1950.
There is scope for further declines below this level at 1.1472 which marks the lows from March this year.
Alternatively, prices could settle into a new range if the initial target at 1.1950 can stall the declines.
But, ahead of this move, expect a retracement back to 1.2277 as prices retest the breached support level for resistance.