The British pound sterling closed the week below the 1.3122 level. This price level held up as resistance earlier on, and on the first retest, managed to see prices bouncing higher.
However, the gains off the rebound from this level saw price action forming a possible double top pattern.
A continuation to the downside from the current levels could indicate further declines.
The next main support level is near the 1.3000 level. If prices break down below this level, GBPUSD could be looking at deeper losses in the medium term.
The major trend line could, however, act as dynamic support. But unless GBPUSD is trading back above 1.3122, the bias shifts to the downside.