GBP/USD Continues Bearish Trend Despite Temporary Recovery

The GBP/USD pair is trimming its monthly losses, the first decline in three months, and hovering around 1.2360 during early Monday trading as markets in the UK and the US observe the Memorial Day holiday. Despite the Biden-McCarthy deal on the extension of the debt ceiling, the US Dollar is retreating from its multi-day high, supporting the recovery of the Cable pair from early April levels. Our forecast remains bearish, anticipating a continuation of the downtrend, particularly as the price has rebounded once again from the 61.8% Fibonacci level.

Please note that trading volumes may be lighter due to the holiday, which could influence market dynamics.