GBPUSD H4: Rejection at EMA 89 — Is the Downtrend Resuming?GBP/USDOANDA:GBPUSDDomicChainaHello everyone, On the H4 timeframe, the latest price action in GBPUSD is painting a clearer picture than before. The recent rebound failed right at the EMA 89 zone around 1.355, and the market responded with a fairly sharp drop back toward 1.348. This is a classic behavior seen when a prevailing downtrend remains intact and rallies function merely as pullbacks. From a structural standpoint, EMA 89 is still positioned above price and continues to slope downward, while EMA 34 has also rolled over to the downside again. Price was rejected immediately upon testing EMA 89, and the lower high – lower low sequence remains unbroken. The most notable detail is the strong bearish candle that formed right after touching EMA 89, signaling that active selling pressure is still present. In my trading experience, when price repeatedly reacts negatively at a higher-timeframe EMA resistance like this on H4, the downtrend is usually not over — it is simply being reaffirmed. In terms of key levels, the 1.352–1.355 zone now acts as near resistance, aligning with the EMA 34/89 cluster. If GBPUSD stages another rebound into this region, I’ll continue to watch price behavior closely for signs of renewed selling pressure. On the downside, 1.345 stands as the nearest notable support. A clear break below this level would increase the probability of an extended decline toward 1.338–1.335. Conversely, the bearish scenario would only be invalidated if price can secure a strong H4 close above 1.360 and stabilize above EMA 89. From a macro perspective, current fundamentals also somewhat favor continued pressure on GBPUSD. The USD remains relatively firm as markets expect the Federal Reserve to avoid premature easing, while global capital still tends to favor the dollar amid trade uncertainty. On the other side, the UK growth outlook remains subdued and inflation pressures are cooling, making it difficult for the Bank of England to maintain a restrictive stance for long. This divergence in policy expectations typically supports USD relative to GBP. What’s your view — do you see this as continuation lower, or a potential base forming near support?